Kenya's Economy Grows 4% in Q3 2024

Kenya's economy experienced a significant slowdown in Q3 2024, growing by only 4%, the lowest rate in nearly four years, primarily due to declines in key sectors like construction and mining. The Kenya National Bureau of Statistics reported that construction activities contracted by 2% and mining by 11.1%, reflecting reduced investor confidence amid rising economic risks and tighter credit conditions. Despite this downturn, some sectors, including agriculture and hospitality, showed resilience with moderate growth. Meanwhile, the Stanbic Purchasing Manager Index indicated a slight expansion in the private sector in December 2024, although inflation pressures led firms to increase selling prices. Protests against proposed tax hikes earlier in the year have strained economic conditions, and the World Bank has downgraded its growth forecast for Kenya to 4.7% for 2024. Overall, the economy is grappling with a challenging macroeconomic environment influenced by both internal unrest and external factors.