Kenya’s economy grew by 4% in the third quarter of 2024, a decline from the 6% growth recorded in Q3 2023, according to the Kenya National Bureau of Statistics (KNBS).
The latest Gross Domestic Product (GDP) report revealed that contractions in key sectors contributed to the slowdown. Mining and quarrying experienced a sharp decline of 11.1%, while the construction sector contracted by 2%.
Despite these challenges, other sectors showed resilience and sustained economic growth. Agriculture, forestry, and fishing expanded by 4.2%, transportation and storage grew by 5.2%, and financial and insurance activities increased by 4.7%. Real estate activities rose by 5.5%, wholesale and retail trade grew by 4.8%, and accommodation and food services achieved significant growth of 13.7%.
The report also highlighted the Kenyan Shilling’s strengthening against major currencies. Compared to Q3 2023, the Shilling appreciated by 10.1% against the US Dollar, 9.3% against the Euro, 7.7% against the British Pound, 21.2% against the Tanzanian Shilling, and 11.7% against the Ugandan Shilling.
KNBS attributed the overall economic slowdown to weaker performances in some sectors, including electricity and water supply, which saw growth drop to 0.9% from 3.3% in Q3 2023. Robust growth in other sectors helped mitigate the broader impact.
