Kenya’s economy is projected to grow 5.5 percent in 2023 and close to 6 percent in 2024, the Central Bank of Kenya (CBK) has said.
Speaking on Tuesday during an Economic Forum hosted by NCBA bank, CBK deputy governor Dr. Susan Koech said the growth will be supported by strong showings, particularly in the agriculture and the manufacturing sectors.
”The CBK expects the economy to grow by 5.5 percent in 2023 and close to 6.0 percent in 2024, supported by a rebound in the agriculture sector, the resilience of the services sector” Koech said during the NCBA Bank 2024 Macroeconomic Outlook forum.
”Growth will also be supported by the impact of Government measures aimed at stimulating growth in priority sectors of the economy, including in agriculture and manufacturing sectors,” she added.
Koech said that the private sector which is dominated by small and medium enterprises, has also emerged as a significant player in economic growth.
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Kenya’s economy has been under stress from high inflation amid a spike in the cost of basic consumer goods, notably food, fuel, and electricity.
In 2022, it slowed to 4.8 percent compared to 7.6 percent in 2021 but remained above the sub-Saharan Africa region’s average growth of 4.0 percent and the global average of 3.5 percent.
The National Treasury attributed the decline to suppressed agricultural production, which was impacted by adverse weather conditions.
“The adverse weather conditions experienced during the year had a significant impact on the agricultural sector, leading to decreased productivity and ultimately affecting the overall economic growth.”Treasury Cabinet Secretary Njuguna Ndung’u said
“This setback has caused concerns among policymakers and economists who had hoped for a continuation of the strong growth momentum seen in the previous year,” he added.
Koech emphasized the importance of addressing the challenges faced by the agricultural sector in order to safeguard future economic growth.
