Kenya's economy grew by 4 percent in Q3 last year

The Kenyan Shilling appreciated against all major currencies compared to the corresponding quarter of 2023. [Wilberforce Okwiri, Standard]

Kenya’s economy grew by 4 per cent in the third quarter of 2024, a decline from the 6 per cent growth recorded in the same period in 2023, according to the latest data from the Kenya National Bureau of Statistics (KNBS).

The drop was attributed to contractions in several key sectors, including mining and quarrying, which shrank by 11.1 per cent, and construction, which contracted by 2 percent, the quarterly Gross Domestic Product (GDP) report now shows. 

Despite the decline in these sectors, KNBS highlighted growth in others that helped sustain the economy. These include: Agriculture, forestry, and fishing: 4.2 per cent, Transportation and storage at 5.2 per cent, Financial and insurance activities: 4.7 per cent, Real estate activities: 5.5 per cent, Wholesale and retail trade: 4.8 per cent, and Accommodation and food services: 13.7 per cent. 

The report also noted the strengthening of the Kenyan Shilling against major global and regional currencies during the quarter. 

Compared to Q3 2023, the Shilling appreciated by: 10.1 per cent against the US Dollar, 9.3 per cent against the Euro, 7.7 per cent against the British Pound, 21.2 per cent against the Tanzanian Shilling, and 11.7 per cent against the Ugandan Shilling. 

However, KNBS highlighted a slowdown in electricity and water supply activities, with growth decelerating to 0.9 per cent in Q3 2024 from 3.3 per cent in the same period in 2023.

The Statistics Bureau attributed the overall economic slowdown to weaker performance in key sectors, although robust growth in others helped mitigate the impact.