The Government of Kenya has announced a notable rebound in the economy, with a GDP growth rate of 5.6% in 2023, up from a revised 4.9%. This resurgence, as detailed in the 2024 Economic Survey Report, was largely fueled by a 19% expansion in the Agriculture, Forestry, and Fishing sectors.
The agriculture sector, which had been contracting in previous years, surged back with a growth rate of 6.5 per cent in 2023, compared to a contraction of 1.5 per cent in 2022. This turnaround was primarily due to favourable weather conditions that prevailed throughout the year, enhancing crop and livestock production.
Key food crops such as maize, beans, and potatoes saw significant increases in production. Maize production, for instance, benefitted from expanded cultivation areas and improved weather conditions.
However, the performance of cash crops was mixed. While tea production rose to 570.3 thousand tonnes from 535.0 thousand tonnes in 2022, coffee production declined by 6.2 per cent to 48.7 thousand metric tonnes. Sugar cane production also faced a severe drop, plummeting by 36.9 per cent from 8.8 million metric tonnes in 2022 to 5.6 million metric tonnes in 2023.
The manufacturing sector experienced a modest growth of 2.0 per cent in 2023, slightly down from 2.6 per cent in 2022. Food manufacturing saw varied performance, with notable increases in dairy products (16.4 per cent) and preserved fruits and vegetables (11.6 per cent). However, sugar manufacturing declined sharply by 40.7 per cent.
The report also revealed a 2.7% increase in formal employment within the manufacturing sector, reaching 363,200 jobs in 2023. Additionally, inflation rates remained within target limits, and Foreign Direct Investments (FDI) saw an uptick during this period.
The information and communication sector grew by 9.3 per cent in 2023, slightly up from 9.0 per cent in 2022. This growth was driven by increased mobile money transfers and a rising demand for data-intensive services. Mobile money transactions grew marginally by 0.6 per cent to $60 million (Kes7.95 billion), while total bandwidth usage nearly doubled from 6.5 million Mbps in 2022 to 11.0 million Mbps in 2023.
The sector also saw a 13.2 per cent increase in the number of licensed internet service providers, highlighting the expanding digital infrastructure. Domestic call traffic grew by 13.4 per cent, and the value of ICT equipment imports rose by 11.0 per cent, indicating a robust demand for technology and communication services.
Despite these positive indicators, the National Treasury and Planning expressed concerns about the necessity of measures to sustain this recovery.
The survey, conducted by the Kenya National Bureau of Statistics, also pointed out a growing inequality gap between the richest and poorest countries globally, reversing a trend of convergence that had persisted for two decades.