Kenya's economic growth slows in third quarter of 2024 - report

Traders at the market/FILE.

Kenya's economy slowed down to 4 per cent growth in the third quarter of 2024 compared to 6 per cent growth in the corresponding quarter of 2023.

This is according to the Quarterly Gross Domestic Product—Third Quarter 2024 report by the Kenya National Bureau of Statistics.

According to the report, the slowdown of the economy in the third quarter of 2024 was largely due to a general decline in growth in most sectors of the economy.

The growth was constrained by contractions in Construction mining and quarrying activities.

The report stated that construction activities contracted by 2 per cent while mining and quarrying posted a contraction of 11.1 per cent in the quarter under review.

Nevertheless, the report shows that growth was noted in agriculture, forestry, and fishing (4.2%), transportation and storage activities (5.2%), financial and insurance activities (4.7%), Real Estate activities (5.5%), wholesale and retail activities (4.8%), and accommodation and food service activities (13.7%).

During the third quarter of 2024, the Kenyan Shilling appreciated against all major currencies compared to the corresponding quarter of 2023.

The Kenyan Shilling gained ground against the US Dollar, Euro and Pound Sterling by 10.1 per cent, 9.3 per cent and 7.7 per cent, respectively.

The Kenya Shilling appreciated against the Tanzania Shilling and Uganda Shilling by 21.2 per cent and 11.7 per cent, respectively.

However, the Kenyan Shilling depreciated by 12.7 per cent and 6.7 per cent against the Japanese Yen and the South African Rand respectively.

Other factors include electricity and water supply activities, whose gross value-added growth decelerated to 0.9 per cent during the third quarter of 2024 compared to 3.3 per cent growth in a similar period of 2023.

Growth of the sector was supported by an increase in the generation of hydropower and a decrease in the generation of electricity from thermal sources.

The Agriculture, Forestry, and Fishing sector grew by 4.2 per cent in the quarter under review, compared to the 5.1 per cent growth recorded in the same quarter of 2023.

The growth was largely on account of favourable weather conditions that prevailed throughout the first three quarters of 2024, albeit less in intensity compared to 2023.