Kenya’s Economic Growth Slows to 4.7% in 2024 Amid Global and Domestic Challenges

Q4 2024 Growth at 5.1%, Down from 6.1% a Year Earlier

NAIROBI, Kenya – May 6, 2025 – Kenya’s economy expanded by 5.1% year-on-year in the fourth quarter of 2024, marking a slowdown from the 6.1% growth recorded in Q4 2023, according to the Kenya National Bureau of Statistics (KNBS).

For the full year 2024, the country’s GDP growth stood at 4.7%, down from 5.7% in 2023. Officials attributed the deceleration to weaker global demand, lingering inflationary pressures, and domestic fiscal constraints.

Key Growth Drivers: Agriculture and Finance

Despite the slowdown, the economy remained supported by resilient performance in the agriculture and financial sectors:

• Agriculture, a vital pillar of the economy, rebounded strongly after previous drought years.

• The financial and insurance sector maintained a steady performance, benefiting from increased digital banking uptake and improved investor confidence.

“The agriculture sector showed marked recovery due to favorable weather, contributing significantly to Q4 growth,” the KNBS noted in its report.

Contracting Sectors: Mining and Construction

The mining and quarrying sector, along with construction, posted negative growth, reflecting reduced investment, high input costs, and delays in infrastructure projects. Rising material prices and reduced public sector development expenditure were cited as major challenges.

Economic Outlook: Moderate Growth Expected

Economists predict a modest recovery in 2025, supported by ongoing economic stimulus plans and efforts to stabilize public finances. However, risks remain from global economic volatility, geopolitical tensions, and domestic debt pressures.

“Growth may improve gradually, but sustained recovery will depend on how effectively the government balances debt reduction with investment in key sectors,” said economist Ruth Mungai.

Regional and Global Context

Kenya’s economic performance aligns with trends seen in several sub-Saharan economies, which have also experienced cooling growth due to global monetary tightening and export demand contraction.