Kenya’s economy grew by 4.6% year-on-year in the second quarter of 2024 compared to 5.6% in the corresponding quarter of 2023, according to national statistics released on Wednesday.
The Kenya National Bureau of Statistics attributed this growth to the strong performance of key sectors, including real estate, whole and retail, financial and insurance activities, and agriculture, forestry, and fishing.
Sector Analysis
The economy also benefited from the growth of other sectors, including Professional, Administrative, and Support Services, Information and Communication, and Accommodation and Food Services.
Agriculture, Forestry, and Fishing activities saw a growth of 4.8% in the period under review, down from 7.8% in the corresponding quarter of the previous year. The growth in this sector was linked to increased milk and sugarcane production and growth in fruit exports.
However, the construction, mining, and quarrying sectors experienced contractions during the same period under review.
The construction sector contracted by 2.9% in the second quarter of 2024, compared to a growth of 2.% in the corresponding period in 2023. The slump in the construction sector was mainly characterized by a 7.8% decline in cement consumption.
In addition, the manufacturing sector recorded a 3.2% growth in real GDP in Q2 2024, compared to the 1.5% growth in the previous year. The growth in this sector was attributed to the increased production of sugar, milk, and soft drinks.
Sugar production surged to 191,034.0 metric tonnes in the second quarter of this year from 97,538 metric tonnes in the same period the previous year.
The number of shares traded in NSE surged to 279 million in June 2024 from 211 million in June 2023. Additionally, the total value of shares traded increased to Ksh5.0 billion in June 2024 from Ksh 4.1 billion in June 2023.
Kenya’s GDP was projected to grow by 5.2% in 2024, a slight drop from 5.6% in the previous year. The nationwide protests against the Finance Bill 2024 caused economic disruption and threatened the country’s economic growth.
Related: Kenya’s inflation rate increases to 4.4% in August 2024
