Kenya’s GDP growth slows in the third quarter due to weak construction and mining sectors By Reuters
NAIROBI (Reuters) – Kenya’s economic growth slowed in the third quarter of 2024 from a year earlier due to poor results in most sectors of the economy, the statistics office said on Tuesday.
The economy grew by 4.0% year-on-year compared to 6.0% in the same quarter of the previous year, according to a statement from Kenya’s National Bureau of Statistics.
“Slow growth is largely the result of a general decline in growth in most sectors of the economy. Growth was limited by contractions in construction and mining and quarrying,” the statistical office states.
Construction decreased by 2.0%, while mining and quarrying decreased by 2.0%.
quarrying decreased by 11.1%, the office announced.
Growth in agriculture, forestry and fishing, transport and storage, financial and insurance activities, real estate, wholesale and retail, and accommodation and food services helped prevent further economic slowdown, the statistics office announced.
Nationwide protests against proposed tax increases at the end of the second quarter resulted in disruption and incidents of violence in major cities.
President William Ruto subsequently lifted the tax measures, but protests continued into the third quarter, with protesters calling for better governance, an end to corruption and better service delivery.
The World Bank cut its 2024 economic growth estimate for Kenya to 4.7% from an initial 5.0%, citing the impact of floods, anti-government protests and weak fiscal consolidation efforts.
The Ministry of Finance estimates that the economy grew by 5.2% in 2024 and forecasts growth of 5.4% in 2025. The economy grew by 5.6% in 2023.
