Kenya's economy expands 5pc in first quarter, fueled by key sectors

Business
By Esther Nyambura | Jul 03, 2024
From (left)Stephen Wainaina, KNBS Board chairman, Treasury CS Prof.Njuguna Ndung'u and Economic Planning PS James Muhati(Right), during the launch of KNBS 2024 economic survey report, on 20th May 2024 at KICC, Nairobi.[Edward Kiplimo,Standard]

Kenya's economy grew by 5 per cent in the first quarter of 2024, marking a slight decrease from the 5.5 per cent growth recorded during the same period last year, according to the Kenya National Bureau of Statistics (KNBS).

Key sectors driving this growth included agriculture, real estate, and accommodation services, among others.

"The economy expanded by 5.0 per cent in Q1 2024, down from 5.5 per cent in Q1 2023. Growth was notably strong in agriculture, forestry, and fishing, as well as in real estate, financial services, information technology, and accommodation and food services," stated the KNBS report.

The accommodation and food services sector showed the most significant growth, though at a slower pace compared to Q1 2023, expanding by 28 per cent from the previous year's 47.1 per cent growth.

This increase was fueled by a notable rise in visitor arrivals.

International arrivals through Jomo Kenyatta International Airport (JKIA) and Mombasa International Airport (MIA) increased by 10.4 per cent in Q1 2024, totaling 409,164 visitors compared to 370,570 in Q1 2023.

Meanwhile, the Agriculture, Forestry, and Fishing sector grew by 6.1 per cent in Q1 2024, slightly lower than the 6.4 per cent growth observed in the same period last year.

Favorable weather conditions and government interventions contributed to increased production, particularly evident in a 42.9 per cent surge in tea production to 168.8 thousand metric tonnes.

However, coffee, fruit, and cut flower exports declined, with coffee exports falling by 13.8 per cent to 9,722.3 metric tonnes.

In contrast, the transportation and storage sector's growth slowed to 3.8 per cent in Q1 2024 from 6.6 per cent in Q1 2023.

Mombasa Port throughput increased by 7.3 per cent to 9,430 thousand metric tonnes, while international passenger arrivals and departures rose by 14.7 per cent to 1,736.1 thousand passengers.

However, passenger numbers on the Standard Gauge Railway (SGR) declined by 11.0 per cent to 531.7 thousand in Q1 2024 from 597.5 thousand in Q1 2023.

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