NAIROBI, Kenya, Jan 7 – Kenya’s economy grew by 4 percent in the third quarter of 2024, a noticeable slowdown from the 6 percent recorded in the same period in 2023, according to the latest findings by the Kenya National Bureau of Statistics (KNBS).
The deceleration in growth was primarily attributed to contractions in key sectors such as construction and mining.
“The growth was constrained by contractions in Construction and Mining and Quarrying activities. Construction activities contracted by 2.0 percent while Mining and Quarrying posted a contraction of 11.1 percent in the quarter under review,” read the report in part.
The construction sector faced multiple challenges, with cement consumption declining by 10 percent and a significant drop in the import of key materials like bitumen and galvanized sheets.
The sector’s struggles were further reflected by a 13.6 percent drop in credit extended to construction enterprises, which stood at Sh129.2 billion in September 2024, down from Sh149.6 billion the previous year.
Despite these setbacks, the economy was buoyed by robust performances in other sectors.
Agriculture, Forestry, and Fishing expanded by 4.2 percent, supported by favorable weather conditions and a rise in sugarcane and milk production.
Transportation and Storage activities grew by 5.2 percent, driven by higher fuel consumption and increased port throughput.
Financial and Insurance services, Real Estate, and Wholesale and Retail sectors also posted positive growth, with accommodation and food services leading the pack with an impressive 13.7 percent increase.
Other sectors such as manufacturing faced setbacks with only 2.3 percent growth, a slight dip from the previous year, despite strong performances in food production like sugar and milk.
Meanwhile, the electricity and water supply sector saw a sharp slowdown to just 0.9 percent growth, down from 3.3 percent in Q3 2023.
Inflation also eased to 4.08 percent in Q3 2024 from 6.93 percent in the same period last year, primarily due to lower food and beverage prices
