The Kenya National Bureau of Statistics (KNBS) has unveiled the 2022 Economic Survey, offering insight into the evolution of various sectors and their socio-economic impact.
In this article, Business Today picks out 5 key highlights that offer a glimpse into the state of Kenya’s economy in the past year.
1. Economic Growth Slowed to 4.8%
According to KNBS data, Kenya’s economy grew by 4.8% in 2022, down from 7.6% in 2021. This signals a more difficult business environment, driven by a weakening shilling, high inflation and consumers’ reduced spending power.
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2. 800,000 Jobs Were Added to The Economy
The size of Kenya’s labour force grew from 18.3 million in 2021 to 19.1 million in 2022. The number of new jobs created in 2022 dropped by 108,300 compared to the previous year.
3. The Informal Sector Created Most New Jobs
The informal sector created 702,000 jobs, representing 86.1% of total jobs created last year. The numbers emphasize the informal sector’s place as the key growth engine for the economy.
4. Tea and Horticulture Dominate Export Revenue
Tea accounted for Ksh163.3 billion in export revenue generated by Kenya in 2022, followed by horticulture which raked in Ksh152.0. Coffee generated Ksh37.1 billion in export revenue, underlining agriculture’s importance. Agriculture’s contribution to GDP dropped to 21.2 per cent in 2022 from 21.5 per cent in 2021.
5. Kenya’s Apparel Industry is Bigger Than You Think
Articles of apparel generated Ksh43 billion in export revenue for Kenya in 2022, almost Ksh6 billion more than coffee. This, among other factors, explain why the US government is keen on committing more investment to the sector. Through its Prosper Africa initiative, the US government this year unveiled a $55 million co-investment package focused on apparel companies in Kenya.
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