Chief Executive Officers domiciled in Kenya as well as the Central Bank of Kenya revealed some sectors which have been booming and propelling Kenya’s Gross Domestic Product.
In a statement issued by the CBK following a Monetary Policy Committee meeting held on Wednesday, Kenya’s Gross Domestic Product grew by 5.6 per cent propelled by several sectors such as agriculture.
According to the CBK, the growth could largely be attributed to the rebound of the agricultural sector following the drought that had plagued the country.
Additionally, a robust performance was noted within the services sector, particularly transport and storage sectors, which could be attributed to the decline in fuel prices.
The financial and insurance, information and communication were also sectors which had witnessed growth in thee latest review.
Additionally, accommodation, food services, tourism and real estate experienced growth in their revenues in the last quarter of 2023 and growth was projected for 2024.
However despite booming growth in the aforementioned industries, manufacturing, and wholesale and retail trade sectors slowed down.
Further, Kenyan CEOs through a market survey conducted by the CBK also expressed optimism about the business activities' growth prospects in the next one year.
According to the CEOs, seasonal factors in the industries are expected to support firms in financial services, tourism and professional services sectors.
Talent management, customer centricity and expansion into new markets are the projected key drivers of firms’ growth.
However, in terms of constraining factors, it was highlighted that the cost of doing business, high inflation and the increased taxation as domestic factors could constrain the growth in the near term.
Externally, firms highlighted geopolitical tensions, energy prices, and macroeconomic volatility as threats to their expansion.
