Home Business Kenya’s economy grows 5.6pc as exports surpass Ksh 1 trillion

Kenya’s economy grows 5.6pc as exports surpass Ksh 1 trillion

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PHOTO | Courtesy

Kenya posted a real gross domestic product of 5.6pc last year from 4.9pc in 2022 according to latest data by the Kenya National Bureau of Statistics (KNBS).

The 2024 Economic Survey Report by the bureau indicates that notable drivers of this growth were agriculture, fisheries and forestry sector which grew fastest at 19.8pc followed by financial and insurance sector at 16.6pc, real estate 13.3pc and transportation and storage 10.6pc.

Agriculture sector for instance which saw good rains coupled with subsidized fertilizer avail to farmers saw the sector bounce back after two consecutive years of contraction to grow 7pc in 2023. The sector contracted by 0.3pc in 2021 and 2.3pc in 2022.

Growth was recorded in the tea sector where production increased from Ksh 156.7 billion in 2022 to Ksh 176.3 billon in 2023.

Maize production on the other hand shot to Ksh 11.3 billion from Ksh 7.9B while sugarcane and milk production rose to Ksh 34.1 billion and Ksh 41 billon respectively. However, coffee suffered a Ksh 7.4 decline to Ksh 19.9 billion.

During the period, Kenya’s trade balance narrowed to Ksh 1.6 trillion after exports surged 15.4pc to reach a historic high of Ksh 1 trillion from Ksh 873.1 billion in 2022, as imports increased by 4.9pc to Ksh 2.6 trillion from Ksh 2.5 trillion.

The increase in exports was driven by tea which earned the country Ksh 188.7 billion followed by horticulture with exports worth Ksh 187.4 billion.

Other top exports last year include apparel and clothing, coffee and iron and steel with Ksh 45.5 billion, Ksh 34.6 billion and Ksh 32.3 billion respectively.

On the other hand, the country’s top imports were petroleum products with Ksh 606 billion, industrial machinery Ksh 289.8 billion, animal and vegetable oil/fats Ksh 139.1 billion, iron and steel Ksh 120.8 billion and unmilled wheat at Ksh 93.8 billion.

Kenya’s top export destination Uganda bought goods worth Ksh 126.3 billion followed by Pakistan with Ksh 78.9 billion.

The country also exported goods worth Ksh 76.3 billion to Netherlands, Ksh 69.3 billon to Tanzania and Ksh 64.3 billion to the United States.

In 2023, China was the leading source of imports with goods valued at Ksh 459 billion followed by UAE with Ksh 411 billion, India 269.2 billion, Saudi Arabia 145.2 billion and Malaysia Ksh 120.5 billion worth of imports.

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