Kenya’s economy grew by 4.0 per cent in the third quarter of 2024 compared to 6.0 per cent growth in the corresponding quarter of 2023.
The deceleration was largely due to a general decline in growth in most sectors of the economy, according to the Kenya National Bureau of Statistics (KNBS) Quarterly Gross Domestic Product Report for the Third Quarter 2024.
According to the report, the growth was constrained by key sectors such as construction and mining and quarrying. The construction activities reduced by 2.0 per cent, while the mining and quarrying posted a contraction of 11.1 per cent in the quarter under review.
The growth was buoyed by significant performances in the agriculture, forestry and fishing (4.2 per cent), transportation and storage activities (5.2 per cent), financial and insurance activities (4.7 per cent), real estate activities (5.5 per cent), wholesale and retail activities (4.8 per cent), and accommodation and food service activities (13.7 per cent) – all that received a considerable growth.
However, despite the growth is the above sectors, the third quarter generally registered mixed performance of key macroeconomic indicators such as inflation, which eased to an average of 4.08 per from 6.93 per cent in a similar quarter of 2023 mainly driven by lower prices of food and non-alcoholic beverages.
During the period, the Kenyan Shilling appreciated against all major currencies compared to what was registered in 2023. Averagely the shilling gained ground against the US Dollar, Euro and Pound Sterling by 10.1 per cent, 9.3 per cent and 7.7 per cent, respectively.
The Shilling also strengthened against the Tanzania Shilling and Uganda Shilling by 21.2 per cent and 11.7 per cent, respectively. However, despite the appreciation, the Kenyan Shilling depreciated by 12.7 per cent and 6.7 per cent against the Japanese Yen and the South African Rand respectively.
The Central Bank Rate (CBR) was reviewed downwards from 13.00 per cent in July to 12.75 per cent in both August and September of 2024 compared to 10.50 per cent for similar months of 2023.
The NSE 20 share index rose by 17.8 per cent to 1,775.7 points in September 2024 from 1,508.0 points in September 2023. The money supply (M3) grew by 25.0 per cent from Ksh5,841.1 billion as at end of September 2023 to Ksh5,992.1 billion as at end of September 2024.
The data also reveals that the current account balance narrowed from a deficit of Ksh139.8 billion in the third quarter of 2023 to a deficit of Ksh139.2 billion in the third quarter of 2024.
