Kenya’s Economy Grows by KSh 1.2 trillion, But Job Creation Slows, 2025 Economic Survey Reveals

By Simba Munyua

Nairobi, Kenya – Kenya’s Gross Domestic Product (GDP) expanded by a significant KSh 1.2 trillion in 2024, according to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS). The survey reveals a 4.7% growth rate, bringing the nominal GDP to KSh 16.22 trillion, compared to KSh 15.03 trillion in 2023.

While the overall economic picture remains positive, the growth rate represents a slowdown compared to the 5.7% reported in 2023. This deceleration comes amidst challenges that hampered job creation, a key priority of President William Ruto’s administration.

Sector Performance:

The agricultural, forestry, and fishing sectors continued to be a significant contributor, growing by 4.6%. This sector accounted for 22.5% of the total GDP, up from 21.5% in 2023. Other sectors experiencing growth include:

• Real Estate: 5.3%
• Transportation and Storage: 4.4%
• Financial & Insurance Activities: 7.6%

However, some sectors faced headwinds. The construction industry experienced a decline of 0.7%, contrasting with the 3% growth in 2023. The mining and quarrying sector contracted sharply by 9.2%, attributed to decreased production of key minerals like titanium, building materials, raw salt, and gemstones.

GDP Per Capita and Consumption:

The survey indicates a positive trend in individual prosperity, with GDP per capita rising from KSh 291,770 in 2023 to KSh 309,460 in 2024. This is bolstered by an increase in gross national disposable income, which rose from KSh 15.75 trillion to KSh 16.99 trillion.

Private final consumption expenditure also saw a substantial increase, jumping from KSh 11.46 trillion in 2023 to KSh 12.48 trillion in 2024. Government final consumption expenditure also increased to KSh 1.8 trillion from KSh 1.77 trillion.

Job Creation Challenges:

Despite the overall economic expansion, the survey highlights a concerning slowdown in job creation. The Kenyan economy generated approximately 782,300 new jobs in 2024, a decrease compared to the 848,100 jobs created in the previous year. This represents the slowest pace of job growth since the COVID-19 pandemic in 2020.

The KNBS attributed this slowdown to several factors, including:

• High financing costs
• Farm-destroying floods
• Economic disruptions following protests against the Finance Bill 2024

Furthermore, the survey reveals that real wages, adjusted for inflation, have fallen for a sixth consecutive year, impacting the disposable income of salaried workers.

Highest Paying Sectors:

The Economic Survey also shed light on the highest-paying sectors in Kenya. Employees of international non-governmental and multilateral organizations, such as the United Nations, remain the highest-paid private sector workers with an average monthly salary of KSh 353,048. Workers in the gas, steam, electricity, and air conditioning supply industries earned the second highest, with an average monthly salary of KSh 205,270.

Looking Ahead:

The 2025 Economic Survey paints a mixed picture of Kenya’s economic performance in 2024. While the economy demonstrated resilience and growth, challenges remain, particularly in job creation and the performance of specific sectors. Addressing these challenges will be crucial for sustaining inclusive economic growth and improving the livelihoods of Kenyans.

Kenya’s economic growth is projected to reach 4.8% in 2025, according to the International Monetary Fund (IMF). This growth is driven by a combination of factors, including a robust services sector, improved agricultural productivity, and accommodative monetary policy. The IMF also estimates that Kenya’s GDP will reach $132 billion in 2025, surpassing Ethiopia’s projected $117 billion, making Kenya the largest economy in East Africa.