Kenya's GDP exceeds Q3 forecasts on agriculture rebound

Daba Finance/Kenya's GDP exceeds Q3 forecasts

BREAKING NEWSDecember 31, 2023 at 11:23 AM UTC

Kenya's economic growth exceeded expectations in the third quarter, driven by a rebound in agricultural output following years of drought and a thriving tourism sector. According to the Kenya National Bureau of Statistics, gross domestic product (GDP) expanded by 5.9% in the three months through September compared to the same period the previous year.

This growth surpassed the central bank's forecast of 5.6% and outpaced the revised figures of 5.5% in the previous quarter and 4.3% a year earlier. Additionally, in December, consumer prices experienced the slowest pace of increase in almost two years.

This moderation in inflation provides some relief for Kenya's economy, which has faced challenges. The accelerated economic growth and the slowdown in inflation suggest positive developments that may contribute to the overall economic recovery in the East African nation.

Key Takeaways

The third quarter's economic growth in Kenya was the fastest in six quarters, driven by various sectors. The agriculture sector played a significant role in this acceleration, rebounding from a contraction of 1.3% in September of the previous year to a robust growth of 6.7%. This recovery was attributed to improved weather conditions in 2023. The financial sector also experienced notable growth, benefiting from the Central Bank of Kenya's tightening of monetary policy, expanding by 14.7%, a significant increase from the 9.6% growth recorded in the same period the previous year. Moreover, the accommodation and food service sector rebounded with a growth rate of 26%, up from 16.9%. This resurgence was driven by an acceleration in visitor arrivals, particularly linked to Kenya hosting the Africa Climate Summit Conference. These positive trends in various sectors point to a broad-based economic recovery in Kenya during the specified period, with agriculture, finance, and hospitality playing pivotal roles in driving growth.

Kenya

GDP

Economic Growth

Nairobi

CBK