Kenya’s economy rebounded in 2023, with a Gross domestic product (GDP) growth rate of 5.6%, exceeding the revised figure of 4.9%.
The 2024 Economic Survey Report by the Kenyan National Bureau of Statistics (KNBS), attributes this growth primarily to a 19% expansion in the Agriculture, Forestry, and Fishing sector.
“Last year it shot to 7% (growth),” Macdonald Obudho, the director general of the statistics office said during the launch of the economic growth report for the period.
During the period, tea production surged, with output increasing in value from Ksh 156.7 billion in 2022 to Ksh 176.3 billion in 2023.
Maize production jumped from Ksh 7.9 billion to Ksh 11.3 billion.
Subsequently, both sugarcane and milk production witnessed gains, reaching Ksh 34.1 billion and Ksh 41 billion, respectively. Total cane production declined by 36.9 per cent from 8.8 million metric tonnes in 2022 to 5.6 million metric tonnes in 2023.
Coffee production, however, declined from Ksh 7.4 billion to Ksh 19.9 billion.
In addition, the report also highlighted a 2.7% increase in formal manufacturing jobs, reaching 363,200 in 2023.
Kenya’s Economy Expected to Stay Strong in 2024
Kenya’s economic outlook for 2024 appears positive, with several factors promoting growth. KNBS cites the service industry, particularly accommodation, food services, information, and communication. Good rains and lower global commodity prices are expected to benefit the agriculture sector.
Additionally, government programs providing subsidized fertilizer and seeds will further support this sector’s growth.
However, the National Treasury and Planning Department expresses concern about measures needed to sustain this economic recovery. Climate change-related weather fluctuations could disrupt agricultural production and reignite inflation. Moreover, the government’s focus on fiscal restraint might limit available cash flow, impacting overall demand.
