Kenya's 2021 Economic Growth Hits 7.5% After 2020 Contraction, KNBS Report Reveals

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Nyakundi Report

Newsroom 1 min read

The Kenya National Bureau of Statistics (KNBS) reported a 7.5% GDP expansion in 2021, marking the strongest annual growth since 2017 when the economy recorded 3.85% growth. This followed a 0.3% contraction in 2020, the first decline in five years, according to the 2022 Economic Survey.

Post-Pandemic Recovery Drives Growth

KNBS Director-General George Obudho attributed the rebound to eased pandemic restrictions and improved business conditions. The 2021 growth rate exceeded 2018's 5.65% and 2019's 5.1% expansion, though the latter year saw a 0.5% contraction in the final quarter.

Key Sector Performance

The service sector contributed 52.4% of GDP, with tourism experiencing a 50.3% increase in foreign visitors to 1.5 million. However, agriculture declined 0.2% due to poor rainfall affecting tea, maize, and coffee harvests.

Exports rose to Sh743.7 billion in 2021 from Sh643.7 billion in 2020, led by horticulture (Sh165.7 billion) and tea (Sh130.9 billion). Imports increased to Sh2.15 trillion, driven by petroleum products (Sh335.3 billion) and industrial machinery (Sh254.8 billion).

Employment data showed gradual recovery, with public sector jobs rising to 923,075 and private sector positions reaching 1.9 million. Obudho noted vaccination efforts and relaxed restrictions contributed to reduced unemployment.

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