The GDP of Kenya has Underperformed in Q3 due to Slow Growth in Pivotal Sectors

From the given information of African Development Bank Group, the economic growth of Kenya has been growing consistently since 2022. The given statistics state that in 2022 the percentage of economic growth is 4.8 and in 2023 it surpassed to 5.2%. Whereas, the impact of inflation has also become higher in percentage. On Tuesday, the reports unveiled in the statistics office stated that Kenya’s GDP growth in the sectors like Construction and Mining has become slow in the third quarter/Q3 of the year 2024.

“The declared growth was largely due to a general decline in growth in most sectors of the economy. The growth was constrained by contractions in construction and mining and quarrying activities”, said the Statistics Office of Kenya

Although, the other sectors which helped to uplift the economy of Kenya in the same year are agriculture, forestry, fishery, transportation, storage activities, real estate activities, wholesale and retail, accommodation, and food services. Whereas, the construction has constrained 2.0% and the mining & quarrying to 11.1%.

“The economy KEGDPQ = ECI grew 4.0% year-on-year from 6.0% in the same quarter the previous year” added the Kenya National Bureau of Statistics

The notable reasons which affected the growth of GDP in construction and mining are the increased tax levied by the government, nationwide protests, high interest rate in the real-estate, shrink of investment in the infrastructure, global factors, and failure in streamlining regulations.