Treasury Cabinet Secretary John Mbadi has highlighted that Kenya experienced a slow economic growth in the financial year 2024/2025 due to the to two major disruptions.

Mbadi revealed that the Kenya’s economic growth rate in 2024 was at 4.7%, this coming down from 5.7% in 2023.

Speaking during the economic briefing at the national assembly , Mbadi stated that widespread flooding in the second quarter and anti-finance bill protests in the third quarter, which significantly affected economic activities nationwide.

 “Floods damaged infrastructure and disrupted production, while the protests affected business operations, particularly in urban areas,” stated Mbadi.

Meanwhile the CS stated that despite the dip, the economy showed resilience, with an average growth rate of 5.2% across 2023 and 2024 adding that Most sectors posted positive performance in 2024, including agriculture, financial and insurance activities, transportation and storage, and real estate.

However, construction and mining sectors contracted, with mining shrinking by 9.2% due to reduced production of key minerals such as construction materials and gemstones.

According to the report by the Kenya National Bureaus of statistics KNBS ,quarterly data showed a recovery towards the end of 2024, with the economy expanding by 5.1% year-on-year in Q4, the fastest pace in a year, supported by gains in accommodation, food services, public administration, trade, and information and communication sectors.

Analysts note that the growth slowdown highlights Kenya’s vulnerability to natural disasters and political instability, even as the country continues to recover from global economic shocks.

The National Treasury is expected to present new measures in the upcoming 2025/2026 budget aimed at cushioning the economy from future disruptions.

ALSO READ:Treasury CS Mbadi outlines measures for improving Kenya’s economy