Kenya’s economy grew by 4.7 percent in 2024, marking a slowdown from the revised 5.7 percent growth recorded in 2023, according to the latest report by the Kenya National Bureau of Statistics (KNBS).
The deceleration occurred despite solid performances in key sectors, underscoring the impact of broader economic challenges.
The KNBS attributed the slowdown to a mix of domestic and global headwinds, including adverse weather conditions and elevated interest rates. Nonetheless, several sectors continued to support the economy’s momentum.
Agriculture, forestry, and fishing recorded a 4.6 percent growth rate, aided by improved rainfall in the early months of the year. However, the sector was still weighed down by localized flooding, high input costs, and significant post-harvest losses, which dampened its full potential.
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The financial and insurance sectors were the top performers, registering a strong 7.6 percent growth as digital transactions and mobile money services continued to gain traction. Transportation and storage grew by 4.4 percent percent, reflecting increased logistical activity, while the real estate sector expanded by 5.3 percent, driven by urban growth and renewed investment in infrastructure.
Macroeconomic indicators painted a mixed picture. Inflation eased significantly to 4.5 percent from 7.7 percent the previous year, largely due to better food supply and lower fuel prices. At the same time, the Kenyan shilling staged a notable recovery, appreciating from Sh159.69 to Sh129.36 against the US dollar by the end of 2024.
Despite these gains, the KNBS noted that the overall economic performance highlights Kenya’s fragile recovery path amid persistent uncertainty. The report reflects a country striving to regain economic stability while navigating external shocks and internal structural challenges.
