NAIROBI, Kenya, July 20 – The Central Bank of Kenya (CBK) has revealed that the agricultural sector played a pivotal role in the country’s robust economic performance in 2023.
According to a report released by the apex bank titled ‘CENTRAL BANK OF KENYA BANK SUPERVISION ANNUAL REPORT 2023’, the agricultural sector grew by 6.5 percent, thus boosting the country’s GDP to 5.6 percent, up from 4.9 in 2022.
The agricultural growth was attributed to favorable weather conditions experienced that year and the government’s measures to improve access to quality and affordable fertilizer.
“The Kenyan economy recorded strong performance in 2023, driven by robust growth of the agriculture and service sectors. Real GDP grew by 5.6 percent compared to a revised growth of 4.9 percent in 2022,” it stated.
Likewise, the service sectors, which include finance and insurance, transport and storage, real estate, information and communication, and accommodation and food services, maintained a strong growth momentum and grew by 7 percent in 2022 and 2023.
However, CBK noted that the country’s industrial growth braked to 1.9 percent, down from 3.9 percent in 2022. The bank, however, attributed this to the rising costs of production and increased international oil prices, which significantly increased energy and transport costs.
Fuel inflation increased to 13.7 percent in December 2023 from 12.7 percent in December 2022.
“Fuel inflation remained elevated during the year in line with trends in international oil prices and exchange rate pass-through to domestic prices, reflected in higher energy and transport costs. It increased to 13.7 percent in December 2023 from 12.7 percent in December 2022,” it stated.
