Kenya’s economy slowed considerably in the third quarter of 2024 as key sectors of the economy recorded a decline in growth.
The figures published by the Kenya National Bureau of Statistics revealed the country’s gross domestic product (GDP) grew by 4.0% in the third quarter of last year compared to 6.0% GDP growth in the third quarter of 2023.
According to the KNBS, the slowed growth was largely attributed to the decline in the construction and mining sectors. Mining and quarrying contracted by 11.1% in the period under review.
Construction activities posted a decline of 2% in the period under review, compared to 4.0% growth in the corresponding period in 2023. This contraction was marked by a drop in cement consumption and production of galvanized sheets by 10.0% and 4.2%, respectively.
However, other sectors of the economy registered notable performances, which support the overall GDP growth.
The Agriculture, Forestry, and Fishing sector grew by 4.2% in the quarter under review, slightly below the 5.1% posed in the same quarter the previous year. “This growth was largely on account of favorable weather conditions that prevailed throughout the first three quarters of 2024,” KNBS noted in a statement.
The manufacturing sector expanded by 2.3% compared to the 2.8% growth registered during the corresponding period in 2023. The growth was mainly attributed to the significant rise in sugar production to 231,052.6 metric tonnes in the third quarter of last year, up from 77,686.0 metric tonnes in Q3 of 2023.
The Transport and Storage sector posted a growth of 5.2% in the period under review, with the expansion attributed to port throughput and consumption of light diesel.
The deceleration follows concerns about a potential slow-down in the country’s economic growth. In December 2024, the World Bank projected Kenya’s GDP to grow at 4.7% in 2024, down from 5.6% in 2023.
Inflation, a measure in prices in the country, eased to 4.08% in the period under review, mainly due to reduced prices of food and nonalcoholic beverages.
