Kenya's Economy Grew By 5.9% In Third Quarter Of 2023, KNBS

• The agriculture, forestry, and fishing sectors demonstrated a notable 6.7% growth in Q3 of 2023
• Fruit exports also grew by 84.3%, accompanied by a 35.4% increase in vegetable exports and a 28.0% rise in tea production
• The growth in agriculture was attributed to favourable weather conditions prevailing throughout the initial three quarters of 2023.

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing insights into both Kenyan and global economic trends.

A report from the Kenyan National Bureau of Statistics (KNBS) has shown that Kenya's economy witnessed a 5.9% growth in the third quarter (Q3) of 2023, significantly driven by a rebound in the agricultural sector.

This marked a significant uptick from the 4.3% recorded in the same quarter of 2023.

The driving force behind this impressive growth was the remarkable rebound in agricultural activities, which had contracted in 2022.

Agricultural rebound

According to the KNBS Q3 report, the agriculture, forestry, and fishing sectors demonstrated a notable 6.7% growth in the current quarter, a stark contrast to the 1.3% contraction observed in the same period of 2022.

The enhanced performance was attributed to favourable weather conditions prevailing throughout the initial three quarters of 2023.

Compared to Q3 in 2022, fruit exports surged by 84.3%, accompanied by a 35.4% increase in vegetable exports and a 28.0% rise in tea production.

Conversely, sugarcane production experienced a decline in the third quarter of 2023, marked by a 55.1% decrease in sugarcane deliveries.

Growth in other sectors

Beyond agriculture, several key sectors contributed significantly to the overall economic expansion.

Financial and Insurance activities experienced a growth of 14.7%, while Information and Communication activities saw an increase of 7.3%.

Notably, there was a 26% growth in the Accommodation and Food Service sector, which was attributed to a substantial increase in visitor arrivals, underscoring Kenya's attractiveness as a tourist destination.

Challenges in the Transportation sector

Transportation and Storage activities faced a deceleration, dropping from 5.1% in the third quarter of 2022 to 2.8% in 2023.

The high cost of petroleum fuels was identified as a contributing factor to this slowdown.

A milestone in KRA's revenue collections

In other related news, KRA recorded a 15.8% surge in revenue growth throughout November, culminating in a total collection of KSh 1.030 trillion despite economic shocks in the reviewed period.

The consistent upward trajectory in revenue collection showcased by KRA in revenue collections has been a defining trend in the past five months (July-November 2023).

"The Authority has maintained an upward trajectory in revenue collection, after recording a 15.8% growth in the month of November. This is after KRA collected KSh 180.714 billion up from KSh 156.095 billion collected in November 2022," read the press release by KRA.