The country’s real GDP expanded by 4.6per cent in the second quarter of 2024 compared to a growth of 5.6per cent in the corresponding quarter of 2023.
A report by the Kenya National Bureau of Statists (KNBS) however show that the growth, albeit slower than the corresponding quarter of 2023, was to a considerable extent supported by Agriculture, Forestry and Fishing (4.8%), Real Estate(6.0%), Financial and Insurance Activities (5.1%), and Wholesale and Retail (4.4%).
Additionally, the economy benefitted from robust performances in other sectors of the economy, such as Accommodation & Food Services (26.6%), Information and Communication (7.2%), and Professional, Administrative&Support Services(6.8%).
However, the growth was somewhat hampered by contractions in the Mining and Quarrying and Construction sectors during the quarter under review.
Mining and Quarrying contracted by 2.7 per cent during the quarter under review. Similarly, the Construction sector also contracted by 2.9 per cent, compared to a growth of 2.7 per cent in the second quarter of 2023.
The macroeconomic indicators showed mixed performance during the quarter under review.
Kenya’s inflation in second quarter of 2024
Inflation rate slowed to an average of 4.87per cent in the second quarter of 2024 from 7.94per cent in the corresponding quarter of 2023, mainly due to lower prices of transportation and food and non-alcoholic beverages.
The appreciation of the Kenyan Shilling that started in the first quarter of 2024 continued in the second quarter of 2024.
The Kenyan Shilling appreciated against all major currencies during the second quarter of 2024 compared to the corresponding quarter of 2023.
On average, the Kenyan shilling gained ground against the Euro, US Dolar and Pound Sterling by 5.6 per cent, 4.6 per cent and 3.7 per cent, respectively.
Similarly, the Kenyan Shilling appreciated against the South African Rand, Tanzania Shilling,and Uganda Shilling.
The central bank rate (CBR) was maintained at 13.00 per cent throughout the months of April, May and June, compared to 10.50 per cent inthe same period of 2023.
Agriculture, Forestry and Fishing
Agriculture, Forestry and Fishing activities grew by 4.8 per cent in the second quarter of 2024 compared to7.8 per cent growth in the corresponding quarter of 2023.
The sector’s performance was supported by increased production of sugarcane, milk and fruit exports.
Cane deliveries increased by 81.5 per cent from 1,250.3 thousand metric tonnes in the second quarter of 2023 to 2,269.3 thousand metric tonnes in the period under review.
Additionally, quantity of milk delivered to processors expanded by 7.9 percent to 221.1 million litres, while the quantity of fruit exports rose by 4.3 per cent to stand at 71,787.0 metric tonnes during the review period.
