Kenya's Economy Grows 5.6% in 2023, Tax Revenue Up 31.8% in April 2024

May 20, 2024, 09:05 AM

Kenya's economy experienced significant growth in 2023, with a 5.6% increase in GDP, up from a revised 4.9% in 2022, according to data from the Kenya National Bureau of Statistics (KNBS). This growth was primarily driven by a 6.5% increase in the agricultural sector, which benefited from favorable weather conditions and contributes 22% to the GDP and a third of total employment. Tax revenue collections for April 2024 rose by 17.1% year-over-year to KES 210.7 billion, while total revenue for the period from July 2023 to April 2024 increased by 11% year-over-year to KES 1.75 trillion. Total revenue for April 2024 was up 31.8% to KES 337.0 billion, with domestic borrowing rising by 42.3% to KES 82.8 billion and external financing decreasing by 57.6% to KES 13.9 billion. Despite these gains, Kenya faces financial strain due to domestic debt interest consuming nearly half of the collected revenue. Annual overall inflation remained at 7.7% in 2023 due to high energy prices.