Kenya’s economy grew by 5.6 percent in 2023, driven by a seven percent expansion in the agriculture sector, according to the head of the national statistics office.
The Kenya National Bureau of Statistics (KNBS) attributed the robust agricultural growth, which accounts for a quarter of the economy, to sector reforms and government subsidies that made farm inputs more accessible to farmers.
This marks a recovery from two consecutive years of contraction in agriculture, previously shrinking by 2.3 percent .
Increased production of milk, sugarcane, tea, and horticultural produce contributed significantly to the sector’s rebound.
Good rains and affordable farming inputs were pivotal in the sector’s recovery, boosting Kenya’s agriculture-reliant economy.
Tourism, another crucial sector, saw visitor arrivals surpass pre-pandemic levels, reaching 2.087 million in 2023, up from 2.035 million previously, according to KNBS Director General Macdonald Obudho.
The manufacturing sector experienced sluggish growth of 2.7 percent in 2023, down from 3.7 percent in 2022.
Real estate emerged as the second-largest contributor to the economy at 13.3 percent .
The number of housing units completed under the government backed affordable housing programme increased to 3,357, up from 1,390.
Expenditure on housing rose to Ksh92.5 billion in the 2023/24 financial year, up from Ksh9.1 billion the previous year.