The year 2023 marked a significant turnaround in the agricultural sector of Kenya, driving the nation’s GDP growth rate to an anticipated 4.9%.
This resurgence, particularly noticeable in the first quarter, was a result of various factors that collectively contributed to a robust increase in agricultural output. The sector’s performance not only boosted the economy but also underscored the potential of agriculture as a key pillar of Kenya’s economic growth.
In addition to agriculture, the services sector demonstrated remarkable resilience, further bolstering the GDP growth. Despite the challenges posed by global economic conditions, the services sector managed to maintain steady growth, contributing significantly to the overall economic performance.
“This resilience is a testament to the robustness and adaptability of Kenya’s service industry, highlighting its crucial role in the nation’s economy,” said NCBA Group Managing Director and CEO John Gachora.
According to NCBA Bank’s microeconomic outlook for 2024, these two sectors – agriculture and services – have been the main drivers of the anticipated GDP growth rate for 2023.
The bank’s outlook suggests a positive economic trajectory for Kenya, underpinned by the strong performance of these sectors.
“As we look forward to 2024, the continued growth and development of these sectors will be pivotal in sustaining the economic momentum and achieving further GDP growth.”
In contrast, the Central Bank of Kenya (CBK) projects that the economy would expand by 5.5% in 2023 and about 6.0% in 2024.