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Is the Kenyan Economy losing steam?
Kenya's #1 newsletter among business leaders & policy makers
Economic Growth contracted in 2024. In today's newsletter, we highlight an analysis that delves into the numbers. Unpacking how each sector was impacted and what awaits us this year…
Glad to have you here again… It's Brian from The Kenyan Wall Street and these are our stories for the day:
ANALYSIS : Kenya’s GDP Growth Slows to Lowest Pace Since 2013
Kenya's economy expanded by 4.7% in 2024, down from 5.7% in 2023, marking the slowest growth since 2013 (excluding the pandemic year of 2020). According to data from the Economic Survey 2025, the slowdown was driven by global economic pressures, tighter financial conditions, and waning post-COVID momentum.
Despite the slowdown, consumer demand remained strong and agriculture showed signs of recovery. Nominal GDP reached KSh 16.2 trillion, with real GDP per capita improving slightly to KSh 208,061.
Sector-wise, agriculture made a notable rebound, contributing 22.5% to nominal GDP. However, manufacturing and construction lost ground, reflecting a broader challenge in industrial investment. Services such as finance and transport remained relatively robust.
On the expenditure side, Kenya remained a consumption-driven economy, with private consumption rising to 76.9% of GDP. Investment growth was largely driven by dwellings and transport equipment, while industrial investment stayed weak.
Key risks going forward include dependence on domestic consumption, slow capital formation, and exposure to global demand fluctuations. However, resilience in services and a recovering agriculture sector offer some hope for stability. Here is the full analysis >>>>>>
Today's Poll
Do you believe Kenya’s economy is on the right track despite the slowdown to 4.7% GDP growth in 2024? |
UNCLAIMED ASSETS : An Overview of 2024
Kenya’s banking sector held KSh 3.3 billion of the country’s KSh 4.3 billion unclaimed assets in 2024. The number of claimants rose by 15.4%, though the value of reunited assets declined slightly. This could mean that the assets that were reclaimed were of lower value or the process of reunification was not as effective as in previous years.
Pension funds reported no unclaimed assets but saw a 20.3% growth in managed assets.This growth was fueled by a sharp rise in investment in government securities.The absence of unclaimed assets in this sector also suggests more efficient handling of funds, which might lead to better investor confidence.
Assets in guaranteed funds also increased, while fixed deposits and listed corporate bonds declined. Meanwhile, quoted equities under pension funds surged by 31%, reaching KSh 206.4 billion. Read more here »»»»»
More Finance Stories
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CREDIT CRUNCH : Manufacturing Grows Despite Reduced Lending
Credit approved to Kenya's manufacturing sector fell to KSh 563 billion in 2024, primarily due to reduced lending by commercial banks. This suggests cautious lending amid possible risk concerns, despite the sector's resilience. Despite the credit dip, the sector grew by 2.8%, and output volume increased by 4.4% due to improved efficiency or demand-driven momentum in production.
Manufacturing's formal employment rose by 1.9%, reaching over 369,000 jobs. EPZ manufacturing investments climbed by 5.6%, with total cumulative investment reaching KSh 171.9 billion. However, the Producer Price Index dipped slightly, with steep declines in pharma prices and sharp increases in mineral-based products. Read more details »»»»»
More on Industry
Markets
Stanbic Bank Kenya CEO Joshua Oigara
🟢 Stanbic Bank Kenya, which once again maintained its tradition as the first bank to release earnings, reported a 16.6% drop in net profit for Q1 2025 to KSh 3.33 billion, down from KSh 3.99 billion a year earlier. The performance was impacted by reduced lending activity and lower foreign exchange income, though the lender retained robust capital and liquidity buffers. Here are the full financial results »»»»»
MTN Uganda CEO Sylvia Mulinge
🟢 Uganda’s largest telecommunications company, MTN Uganda, has reported its Q1 2025 financial results, marked by double-digit revenue growth supported by expanding data and fintech services. Service revenue for Q1 2025 rose 13.5% year-on-year to Ush 841.4 billion, powered by a 32.5% surge in data revenue to Ush 235.6 billion and an 18.4% rise in fintech revenue to Ush 255.6 billion. Read the full financial results here »»»»»
🟢 Kenya Power to pay half-year dividends on 4% & 7% preference shares on 30th June 2025 — register closes 30th May 2025.
Today's NSE Gainers and Losers
Source : NSE
Consumer Guide
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Yesterday's Poll Results
Do you think it is a wise idea to extend the SGR considering its passenger numbers have fallen?
🟩🟩🟩🟩🟩🟩 Yes (59%)
🟨🟨🟨🟨⬜️⬜️ No (41%)
Our faith in freedom does not rest on the foreseeable results in particular circumstances but on the belief that it will, on balance, release more forces for the good than for the bad.
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