Kenya’s Q3 GDP development slows on weak development, mining sectors

NAIROBI (Reuters) – Kenya’s financial development slowed within the third quarter of 2024 from the identical interval a yr earlier as a result of underperformance in most sectors of the financial system, the statistics workplace mentioned on Tuesday.

The financial system grew 4.0% year-on-year from 6.0% in the identical quarter the earlier yr, the Kenya Nationwide Bureau of Statistics mentioned in a press release.

“The decelerated development was largely as a result of a normal decline in development in most sectors of the financial system. The expansion was constrained by contractions in development and mining and quarrying actions,” the statistics workplace mentioned.

Development actions contracted 2.0% whereas mining and

quarrying shrank 11.1%, the workplace mentioned.

Progress in agriculture, forestry and fishing, transportation and storage actions, monetary and insurance coverage actions, actual property actions, wholesale and retail actions and lodging and meals service actions helped cushion the financial system from slowing additional, the statistics workplace mentioned.

Nationwide protests in opposition to proposed tax will increase on the finish of the second quarter resulted in disruptions and incidents of violence in main cities.

    President William Ruto subsequently scrapped the tax measures, however demonstrations endured into the third quarter, with protesters calling for higher governance, an finish to corruption and higher service supply.

The World Financial institution has downgraded Kenya’s financial development estimate for 2024 to 4.7%, from an preliminary 5.0%, citing the affect of floods, anti-government protests and faltering fiscal consolidation efforts.

The finance ministry has estimated that the financial system expanded 5.2% in 2024 and initiatives development of 5.4% in 2025. The financial system grew 5.6% in 2023.