The agriculture sector and the services industry are the two economic sectors expected to record the best growth in 2024, a report published by the Parliamentary Budget Office (PBO) shows.
According to the report, agricultural growth will be boosted by ample rainfall, the fertiliser subsidy programme rolled out by the government as well as reduced production costs.
On the other hand, the service industry will benefit from the global pandemic recovery, and increased tourism.
This will be a huge boost to market players in the hospitality and financial services sectors.
"The government's initiatives to revitalize the sector through the promotion of international conferences, cultural festivals, and wildlife safaris will further contribute to its growth," read part of the report.
Services Industry
Some of the sub-sectors under this category include; transport, communications, insurance, real estate, tourism, and banking among others.
Per the recent report from PBO, the service sector presents opportunities for growth and development which consequently contribute to overall economic expansion.
Additionally, the report reveals that since international tourism has been gradually recovering since the 2020 pandemic, the service sector is on an upward trajectory.
"The recovery trend is expected to continue in 2024; with the number of international arrivals to Kenya projected at 2,476,733 in 2024, with total inbound receipts at 447,501,084," read part of the report.
This sector has employed thousands of Kenyans who rely on it to make ends meet.
In 2021, the sector contributed to about 54.41 per cent of the country's Gross Domestic Product (GDP).
Agriculture Sector
Since the Kenya Kwanza government ascended into office, the State has put more emphasis on revitalising the agricultural sector to ensure more Kenyans are self-reliant and Kenya realises its goal of becoming food sufficient.
Growth in this sector will be boosted by the increased rainfall the country has been receiving. Other predicted favourable weather conditions will also positively influence the sector.
Another factor is the fertiliser subsidy introduced by the government. Lowering the price from Ksh6,500 to Ksh2,500 has availed essential inputs to farmers across the country.
Furthermore, the government has introduced a post-harvest management system with about 17 certified warehouses with a combined capacity of 365,000 metric tons prepared in maize-growing areas.
"Expanding agriculture, agribusiness, and value addition increases exports, reduces imports, and lowers food prices, thereby contributing to economic stability," read part of the report.
