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Kenya’s economy expected to grow by 6% in 2024

Kenya’s economy is expected to register a 6 percent growth in 2024 powered by increased agricultural output and growth in the services sector, this is according to the Central Bank of Kenya (CBK).

CBK Deputy Governor Dr Susan Koech said that CBK expects an economic growth of 5.5per cent in 2023 and close to 6.0 per cent in 2024.

Speaking in Nairobi on Tuesday during the launch of the NCBA bank group Macroeconomic outlook themed to Divergence Across Economies and SectorsDr Koech said that some of the global economy shocks that have been witnessed are covid pandemic, geopolitical tensions and high inflation rates.

“Despite the global challenges Kenya has remained strong and is expected to remain above the global and sub-Saharan averages in 2023-2024,” said Dr Koech.

Dr Koech explained that the economy improved by 4.8 per cent in 2022, way above the sub-Saharan region average 4.0 per cent and global average of 3.5per cent.

“We expect the economy to grow by 5.5per cent in 2023 and close to 6.0per cent in 2024 supported by a revived agriculture sector, resilience of the services sector and impact of the government measures aimed at stimulating growth in priority sectors of the economy including agriculture and manufacturing,” said Dr Koech.

She further noted that the main resilience of the Kenyan economy is because it is well diversified away from the traditional agriculture sector which is about 22per cent of the Gross Domestic Product (GDP).  

“Kenyan exports are well diversified in terms of products and destination with Africa remaining the main export destination for about 40per cent of the exports,” said Dr Koech.

She said that the implementation of the Africa Continental Free Trade Area is expected to spur increased intra Africa Trade and therefore enhance demand for Exports of Kenyan products.

NCBA Group Managing Director and CEO John Gachora emphasised that they expect the services sector to register strong performance in 2024.

Gachora said that NCBA is optimistic that 2024 will be a good year in terms of the Gross Domestic Product (GDP) despite the pinch which Kenyans are experiencing due to the high cost of living.

“Agriculture output is likely to expand by 5 per cent in 2024 according to our internal prospects,” said Gachora.

“We have a government that is committed to look at some things and make the necessary changes,” said Gachora.

He noted that they see a rise in cost of living that may push back a good number of people to poverty since the headline inflation came in at 6.9% in October and around 6% year to date.

“We expect the services sector to register good performance in 2024 but broad economic strain could see some pockets of the sector grow below their pre-COVID levels,” said Gachora.

By Damaris Munyao and Nice Wambui

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