Kenya's economy expanded by a mere 5 per cent in the first three months of 2024, marking a 0.5 percent growth decline compared to the previous year due to challenges facing various sectors.

The Kenya National Bureau of Statistics (KNBS) Quarterly Gross Domestic Product Report has unveiled a complex economic landscape, revealing significant downturns in key sectors while others showed resilience.

The construction sector, for instance, saw growth plummet to a mere 0.1 percent, a stark contrast from the 3 percent recorded in the corresponding period of 2023.

This decline was underscored by a notable decrease in cement consumption, dropping by 12.7 per cent to 1,949.9 thousand metric tonnes.

According to KNBS, "Cement consumption declined by 12.7 per cent to stand at 1,949.9 thousand metric tonnes from 2,234.2 thousand metric tonnes in the corresponding period of 2023."

Read More

  1. Formal credit access eludes majority of Kenyan MSMEs, report reveals
  2. Kenya's inflation rate inches upward in may amid rising food, energy costs
  3. KNCCI, Cereal Growers Association raise concerns over new export levy by AFA

Transportation and storage sectors also faced challenges, recording a growth rate of 3.8 percent compared to 6.6 percent in the previous year's first quarter.

This slowdown reflects broader economic pressures within these industries.

Similarly, imports of bitumen, critical for infrastructure development, significantly decreased from 25,482.6 metric tonnes in Q1 2023 to 17,237.8 metric tonnes in the current period.

"The quantity of imported bitumen decreased from 25,482.6 metric tonnes recorded in the first quarter of 2023 to 17,237.8 metric tonnes in the period under review," KNBS highlighted.

In contrast, sectors like agriculture, forestry, and fishing exhibited resilience, growing by 6.1 per cent, buoyed by favourable weather conditions that bolstered agricultural production.

"Similar to the first quarter of 2023, agricultural production was vibrant in the corresponding quarter of 2024, owing to favourable weather conditions that supported crop and animal production during the quarter," KNBS noted.

Real estate also showed stability with a growth rate of 6.6 per cent, indicating a robust property market amidst broader economic challenges.

Financial and insurance services expanded by 7 per cent, while information and communication sectors grew by 7.8 per cent, driven by ongoing digitalization efforts.

Despite these varying sectoral performances, the overall economic slowdown in Kenya's first quarter of 2024 poses challenges that policymakers and industry leaders will need to address to sustain economic momentum in the coming quarters.