Kenya’s economy grew by 4.7% in 2024, a slowdown from the 5.7% recorded in 2023, Treasury Cabinet Secretary John Mbadi revealed on Wednesday. The deceleration was attributed primarily to two major disruptions: severe flooding and widespread anti-finance bill protests, which disrupted business and infrastructure across the country.
Speaking during an economic briefing, CS Mbadi emphasized that while the economy remained resilient, the setbacks experienced during the year had a notable impact on growth.
“Floods in the second quarter damaged infrastructure and disrupted agricultural production,” said Mbadi. “This was followed by civil unrest in the third quarter, particularly in urban centers, which disrupted business operations and investor confidence.”
Despite the challenges, Kenya’s economy maintained an average growth rate of 5.2% over the past two years (2023 and 2024). Most sectors recorded positive performance in 2024, with notable growth in agriculture, financial services, and information technology. However, the construction and mining sectors contracted, reflecting the direct impact of weather-related damage and investment uncertainties caused by the protests.
Economists say the latest figures highlight Kenya’s vulnerability to both climate change and political instability. “The country must build greater resilience in infrastructure and governance to shield the economy from such shocks,” said one analyst.
CS Mbadi remained optimistic about the economic outlook, projecting a rebound in growth to 5.3% annually over the 2025/2026 period. He noted that the government is working on long-term strategies to improve economic stability, including climate adaptation projects and strengthening public engagement around fiscal reforms.
The National Treasury is expected to outline detailed recovery and resilience plans in the upcoming 2025/2026 national budget, scheduled to be presented later this month. Key areas of focus are anticipated to include disaster preparedness, job creation, and investment in infrastructure to spur inclusive growth.
As the country continues its post-pandemic recovery and contends with new global and domestic challenges, policymakers face the critical task of insulating Kenya’s economy from future shocks while sustaining its development momentum.
