NAIROBI, Oct. 2 (Xinhua) — Kenya’s economy expanded 4.6 percent in the second quarter of 2024, a slowdown from the 5.6 percent growth recorded in a similar period the previous year, the country’s national statistics bureau said Wednesday.
According to the Kenya National Bureau of Statistics (KNBS), the growth was mainly driven by sectors such as agriculture, forestry, fishing, real estate, financial and insurance activities, and wholesale and retail.
Despite the overall growth, the economy faced some challenges. KNBS noted contractions in the mining, quarrying, and construction sectors during the quarter hindered the overall performance.
The report also highlighted mixed performance in macroeconomic indicators. Inflation slowed to an average of 4.87 percent in the quarter, a significant decrease from 7.94 percent in a similar period in 2023, largely driven by lower transportation, food, and non-alcoholic beverages prices.
The report follows projections from the National Treasury in September, forecasting Kenya’s economy to grow 5.2 percent in 2024 and 5.4 percent in 2025. The Treasury’s Budget Review and Outlook Paper pointed out this growth would be supported by increased agricultural productivity and a resilient services sector.
The Treasury also noted the industrial sector, particularly manufacturing, is expected to experience growth driven by reductions in production costs and a decrease in exchange rate pressures.
