KNBS Report 2023

Last Updated on July 4, 2023 by Sabina

The Kenya National Bureau of Statistics (KNBS) released its Economic Survey 2023 on May 3, 2023. The report provides an overview of the Kenyan economy in 2022, including its performance, key sectors, and challenges.

According to the report, the Kenyan economy grew by 4.8% in 2022, down from a revised growth of 7.6% in 2021. Adverse weather conditions during the year were attributed to causing a slowdown in growth in agricultural production.

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The report also highlighted the following key sectors of the Kenyan economy in 2022:

Agricture

The agriculture sector in Kenya grew by 2.7% in 2022, down from a growth of 5.2% in 2021.The adverse weather conditions were attributed to causing a decline in crop production, resulting in the slowdown.

The following are some of the key findings of the KNBS Report 2023 on agriculture:

Crop production: Crop production declined by 1.7% in 2022, mainly due to the adverse weather conditions. The decline was most pronounced in the cereals subsector, which declined by 4.5%.
Livestock production: Livestock production grew by 4.5% in 2022, mainly due to the increased demand for meat and milk.The poultry subsector drove the growth, experiencing a remarkable increase of 10.1%.
Fisheries production: Fisheries production declined by 1.7% in 2022, mainly due to the decline in fish landings. The decline was most pronounced in the Lake Victoria subsector, which declined by 8.7%.
Forestry production: Forestry production grew by 1.7% in 2022, mainly due to the increased demand for timber and firewood. The sawnwood subsector drove the growth, registering a significant increase of 5.6%.

The report also identified the following challenges facing the agriculture sector in Kenya:

Adverse weather conditions: Adverse weather conditions, such as droughts and floods, are a major challenge to the agriculture sector in Kenya. These conditions can lead to crop failures and livestock losses, which have a negative impact on food security and livelihoods.
Low productivity: The agriculture sector in Kenya is characterized by low productivity. This is due to a number of factors, including poor agricultural practices, lack of access to inputs, and limited access to markets.
High cost of production: The cost of production in the agriculture sector is high. This is due to a number of factors, including the high cost of inputs, such as fertilizer and seeds, and the high cost of transport.

The report recommended the following measures to address the challenges facing the agriculture sector in Kenya:

Invest in irrigation: The government should invest in irrigation to reduce the impact of adverse weather conditions on crop production.
Promote agricultural research and development: The government should promote agricultural research and development to improve agricultural productivity.
Provide access to inputs and markets: The government should provide farmers with access to inputs, such as fertilizer and seeds, and to markets, so that they can get a fair price for their produce.

Overall, the KNBS Report 2023 paints a mixed picture of the agriculture sector in Kenya. While the sector grew in 2022, this growth was below the revised growth of 5.2% in 2021. Adverse weather conditions were attributed to causing the slowdown in growth. The report also identified a number of challenges facing the agriculture sector, such as adverse weather conditions, low productivity, and high cost of production. The report recommended a number of measures to address these challenges.

Industry

The industry sector in Kenya grew by 6.1% in 2022, up from a growth of 5.7% in 2021. The performance of the manufacturing sector drove the growth, exhibiting an impressive increase of 7.2% in 2022.

The following are some of the key findings of the KNBS Report 2023 on industry:

Manufacturing: The manufacturing sector grew by 7.2% in 2022, up from a growth of 6.4% in 2021. The growth was driven by the increased production of food, beverages, and tobacco products.
Construction: The construction sector grew by 5.7% in 2022, up from a growth of 5.4% in 2021. The growth was driven by the increased demand for housing and infrastructure projects.
Mining and quarrying: The mining and quarrying sector grew by 4.4% in 2022, up from a growth of 3.9% in 2021. The growth was driven by the increased production of minerals, such as gold and gemstones.
Electricity, gas, and water: The electricity, gas, and water sector grew by 5.6% in 2022, up from a growth of 5.2% in 2021. The growth was driven by the increased demand for electricity and water.

The report also identified the following challenges facing the industry sector in Kenya:

High cost of inputs: The cost of inputs in the industry sector is high. This is due to a number of factors, including the high cost of energy, transport, and labor.
Inefficient infrastructure: The infrastructure in the industry sector is inefficient. This is due to a number of factors, including the poor state of roads and railways, and the unreliable power supply.
Unstable political environment: The political environment in Kenya is unstable. This can lead to uncertainty and delays in investment decisions.

The report recommended the following measures to address the challenges facing the industry sector in Kenya:

Reduce the cost of inputs: The government should reduce the cost of inputs in the industry sector by providing subsidies and tax breaks.
Improve infrastructure: The government should improve infrastructure in the industry sector by investing in roads, railways, and power plants.
Create a stable political environment: The government should create a stable political environment by promoting dialogue and cooperation between different political parties.

Overall, the KNBS Report 2023 paints a positive picture of the industry sector in Kenya. While the sector grew in 2022, this growth was above the revised growth of 5.7% in 2021. The report also identified a number of challenges facing the industry sector, such as high cost of inputs, inefficient infrastructure, and unstable political environment. The report recommended a number of measures to address these challenges.

Services

The services sector in Kenya grew by 5.6% in 2022, up from a growth of 5.5% in 2021.The performance of the transport, storage, and communication sector drove the growth, achieving a remarkable increase of 9.4% in 2022.

The following are some of the key findings of the KNBS Report 2023 on services:

Transport, storage, and communication: The transport, storage, and communication sector grew by 9.4% in 2022, up from a growth of 8.9% in 2021. The increased demand for transportation services, such as air travel and freight transport, drove the growth.
Wholesale and retail trade: The wholesale and retail trade sector grew by 5.4% in 2022, up from a growth of 5.2% in 2021. The increased demand for goods and services drove the growth.
Financial intermediation: The financial intermediation sector grew by 5.2% in 2022, up from a growth of 5.0% in 2021.The increased demand for financial services, such as loans and investments, drove the growth.
Real estate: The real estate sector grew by 5.3% in 2022, up from a growth of 5.1% in 2021. The increased demand for housing and commercial properties drove the growth.

The report also identified the following challenges facing the services sector in Kenya:

Unstable political environment: The political environment in Kenya is unstable. This can lead to uncertainty and delays in investment decisions.
High cost of inputs: The cost of inputs in the services sector is high. This is due to a number of factors, including the high cost of labor, rent, and energy.
Inefficient infrastructure: The infrastructure in the services sector is inefficient. This is due to a number of factors, including the poor state of roads and railways, and the unreliable power supply.

The report recommended the following measures to address the challenges facing the services sector in Kenya:

Create a stable political environment: The government should create a stable political environment by promoting dialogue and cooperation between different political parties.
Reduce the cost of inputs: The government should reduce the cost of inputs in the services sector by providing subsidies and tax breaks.
Improve infrastructure: The government should improve infrastructure in the services sector by investing in roads, railways, and power plants.

Overall, the KNBS Report 2023 paints a positive picture of the services sector in Kenya. While the sector grew in 2022, this growth was above the revised growth of 5.5% in 2021. The report also identified a number of challenges facing the services sector, such as unstable political environment, high cost of inputs, and inefficient infrastructure. Report recommended a number of measures to address these challenges.

The report also identified the following challenges facing the Kenyan economy in 2023:

High debt levels: Kenya’s debt stock stood at 70.2% of GDP in 2022, up from 62.7% of GDP in 2021. This high debt level could pose a risk to the country’s fiscal sustainability.
Inflation: Inflation in Kenya rose to 8.0% in May 2023, up from 6.7% in April 2023. Rising food and fuel prices drove this increase.
Climate change: Climate change is posing a major threat to Kenya’s economy, particularly its agricultural sector. In 2022, adverse weather conditions led to a decline in crop production, which had a negative impact on economic growth.

Overall, the Economic Survey 2023 paints a mixed picture of the Kenyan economy in 2022. While the economy grew by 4.8%, this was below the revised growth of 7.6% in 2021. The slowdown in growth was attributed to adverse weather conditions, which resulted in suppressed agricultural production during the year. The report further identified high debt levels, inflation, and climate change as major challenges facing the Kenyan economy in 2023.