The latest Economic Survey report from the Kenya National Bureau of Statistics (KNBS) has unveiled some concerning trends for the country’s job market and economic growth in 2024.

What this means for Kenya’s future—In 2024, Kenya saw a significant decrease in employment opportunities, with only 782,000 new jobs generated compared to 848,200 in the previous year. The informal sector played a critical role in creating new jobs, accounting for over 90% of all employment outside of small-scale agriculture.

However, the lack of stability, low wages, and limited social protections associated with informal jobs are raising concerns about economic inequality and long-term development.

Kenya’s GDP growth slowed to 4.7% in 2024, down from 5.7% in 2023. Despite this slowdown, the nominal GDP increased, indicating continued economic expansion. Global economic pressures, as highlighted by the IMF’s forecast of a worldwide GDP decline to 2.8% in 2025, have contributed to Kenya’s sluggish growth.

Several major industries faced challenges in 2024. Agriculture saw a decline in growth to 4.4%, impacting food security and exports. The construction sector also experienced setbacks, with a drop in the number of affordable housing units completed compared to the previous year.

Various domestic and global pressures have contributed to Kenya’s economic challenges. High debt servicing costs, persistently high interest rates, social unrest following protests against the 2024 Finance Bill, extreme weather events, and global trade tensions have all played a role in the economic slowdown.

Despite the current difficulties, there is optimism for economic recovery in 2025. Improved agricultural output, favorable weather conditions, and the implementation of subsidies are expected to drive growth. As Kenya navigates these economic hurdles, policymakers and businesses must focus on strengthening formal employment, stabilizing key industries and enhancing resilience against global economic shifts.

THE EDITOR’S PICK!

While the Economic Survey report paints a challenging picture for Kenya’s economy in 2024, there are opportunities for recovery and growth on the horizon. By addressing the underlying issues and implementing strategic measures, Kenya can overcome its current economic challenges and pave the way for a more prosperous future.