KNBS DG Macdonald Obudho says economy is growing, cites recent report
The Kenya National Bureau of Statistics (KNBS) Director General Macdonald Obudho says Kenya’s economy is growing fairly well, citig statistics from a recent report by the body.
According to the latest economic survey by KNBS, Kenya’s nominal GDP increased from Ksh15.03 trillion in 2023 to Ksh16.2 trillion in 2024.
Speaking during an interview with a local TV station on Wednesday, May 14, 2025, Obudho, however, acknowledged that the growth had decelerated as compared to 2023, which recorded a 5.7 per cent growth rate. The growth rate for 2024, according to the 2025 Economic Survey, was 4.7 per cent.
“Our economy is growing. The 2025 Economic Survey revealed that we moved from Ksh15 trillion to Ksh16.2 trillion, a growth of Ksh1.2 trillion in a span of one year,” Obudho stated.
The growth, according to KNBS, was to a large extent supported by activities in agriculture, forestry and fishing (4.6 per cent), financial and insurance activities (7.6 per cent), transportation and storage (4.4 per cent) and real estate (5.3 per cent).
Other key sectors that posted significant growth in 2024 were wholesale and retail (3.8 per cent), information and communication (7.0 per cent), accommodation and food service (25.7 per cent) and public administration (8.2 per cent).
During the period under review, most economic activities recorded positive growth except construction, mining and quarrying activities, which contracted by 0.7 and 9.2 per cent, respectively.
The contraction in construction activities was evidenced by a significant decline in consumption of cement, while that of mining and quarrying activities was manifest in a significant drop in production of key minerals such as construction materials, titanium, salt and gemstones.
The report also shows that broad money supply expanded by 1.0 per cent to stand at Ksh6.1 trillion as at the end of December 2024, compared to a growth of 19.9 per cent as at the end of December 2023.
The Central Bank Rate (CBR) was reviewed upwards from 12.50 per cent in December 2023 to 13.00 per cent in March 2024 and later downwards to 12.75 per cent and 11.25 per cent in September and December 2024, respectively. The inter-bank rate declined from 11.65 per cent in December 2023 to 11.45 per cent in December 2024, while the average interest rate on commercial bank loans and advances rose from 14.63 per cent in December 2023 to 16.89 per cent in December 2024.
The overall liquidity ratio rose from 56.8 per cent as at December 2023 to 58.4 per cent as at December 2024. Credit to the private sector increased from Ksh4.7 trillion in December 2023 to Ksh4.75 trillion in December 2024.
Inflation
Inflation declined from 7.7 per cent in 2023 to 4.5 per cent in 2024, mainly due to relatively lower food prices.
The volume of shares traded on the Nairobi Securities Exchange (NSE) increased from 3.745.2 billion in 2023 to 4.937.5 billion in 2024, while the NSE 20-Share Index rose from 1,501 points to 2,011 points.
The current account deficit narrowed further from Ksh382.7 billion in 2023 to Ksh208.9 billion in 2024, mainly on account of stronger export performance.
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Francis Muli
Francis Muli is a passionate digital journalist with over seven years of experience in crafting compelling stories across various platforms. His major focus is in business, politics and current affairs. He brings a keen eye for detail and a commitment to uncovering the truth. He has contributed to leading publications across the country. When not chasing stories, you can find Muli exploring new technologies, attending local events, or reading fiction. Connect with Francis Muli on X @FMuliKE and Facebook (Francis Muli) to follow his latest stories and insights.
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