Kenya's economy demonstrated resilience in 2024, recording a 4.7 per cent growth in real Gross Domestic Product (GDP), despite a slowdown from the 5.7 per cent growth seen in 2023.
The data, released by the Kenya Bureau of Statistics (KNBS) on Tuesday, highlighted several key sectors contributing to the overall economic performance.
Despite the dip, the economic outlook remained positive, with several sectors contributing to the overall performance.
The agricultural sector remained a key driver of the economy, growing by 4.6 per cent in 2024, though slower than the 6.6 per cent growth recorded the previous year.
Speaking in Nairobi at the launch of the 2025 Economic Survey, Macdonald Obudho, director general of KNBS, told journalists that the country’s overall economic performance was buoyed by gains in most sectors, with agriculture, forestry, and fishing sectors expanding by 4.6 per cent.
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"The agriculture sector exhibited an overall improved performance in 2024, which was attributable to increased crop yields, increased livestock production coupled with increased government support to the sector," Obudho stated.
Agriculture, Forestry, and Fishing made up 22.5 per cent of the GDP, up from 21.5 per cent in 2023, highlighting its continued importance to the Kenyan economy.
Other key sectors such as Financial & Insurance Activities (7.6 per cent), Transportation and Storage (4.4 per cent), and Real Estate (5.3 per cent) also posted strong growths.
However, not all sectors fared equally well.
The construction industry faced a contraction of 0.7 per cent, down from 3.0 per cent growth in 2023.
Similarly, mining and quarrying suffered a deeper contraction of 9.2 per cent, following a 6.5 per cent decline in 2023.
The decline in mining was attributed to reduced production in vital minerals like construction materials, titanium, salt (crude), and gemstones.
On the macroeconomic front, Kenya’s nominal GDP rose to Sh16,224.5 billion in 2024, from Sh15,033.6 billion in 2023.
The contribution from services remained dominant, accounting for 61.1 per cent of the GDP, while industry-related activities represented 16.5 per cent.
In terms of national income, Kenya’s Gross National Disposable Income grew to Sh16,997.9 billion in 2024, up from Sh15,752.9 billion the previous year.
This increase, alongside a rise in GDP per capita from Sh291,770 in 2023 to Sh309,460 in 2024, reflects an improvement in the living standards of the average Kenyan.
Private consumption also saw a notable rise, with final consumption expenditure increasing from Sh11,460.0 billion in 2023 to Sh12,483.7 billion in 2024.
Government consumption also rose, albeit more modestly, from Sh1,770.5 billion in 2023 to Sh1,809.9 billion in 2024.
This economic performance paints a picture of a diversified economy, where agriculture continues to lead, but the slowdown in construction and mining presents challenges that will need to be addressed to ensure sustained growth in the future.
