Kenya’s economy has shown signs of stabilization in the third quarter of 2024.
According to the latest report by the Kenya National Bureau of Statistics (KNBS), the economy registered a growth rate of 4.0% compared to 6.0% in the same period last year.
The report indicates that the economy was constrained by contractions in the Construction, Mining and Quarrying sectors, with the former contracting by 2.0% and the latter by 11.1%.
“The decelerated growth was largely due to a general decline in growth in most sectors of the economy,” read part of the report.
However, the Agriculture, Forestry and Fishing sectors grew by 4.2%, driven by favourable weather conditions and increased production of sugarcane and milk.
The report also shows that inflation eased to an average of 4.08% in the third quarter of 2024 from 6.93% in the same period last year, mainly driven by lower prices of food and non-alcoholic beverages.
How Kenyan Shilling performed against major currencies
In addition, the Kenyan Shilling appreciated against all major currencies compared to the corresponding quarter of 2023, with an average gain of 10.1% against the US Dollar, 9.3% against the Euro, and 7.7% against the Pound Sterling.
“During the third quarter of 2024, the Kenyan Shilling appreciated against all major currencies compared to the corresponding quarter of 2023,” KNBS noted in the report.
“Similarly, the Kenya Shilling appreciated against the Tanzania Shilling and Uganda Shilling by 21.2 per cent and 11.7 per cent, respectively. However, the Kenyan Shilling depreciated by 12.7 per cent and 6.7 per cent against the Japanese Yen and the South African Rand respectively,” it added.
The report also highlights that the Central Bank Rate (CBR) was reviewed downwards from 13.00% in July to 12.75% in both August and September of 2024 and that the NSE 20 Share Index rose by 17.8% to 1,775.7 points in September 2024 from 1,508.0 points in September 2023.
Overall, the report suggests that Kenya’s economy is showing signs of stabilization, with a growth rate that is higher than expected and inflation that is easing.
However, the report also highlights the need for continued monitoring and analysis to ensure that the economy remains on a stable path.
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