Kenya: Gross Domestic Product - Kenya GDP

The Gross Domestic Product (GDP) is the total value of complete goods and services produced in a country within a given period.^[1] The GDP of a country estimates the size of an economy as well as its growth over time.

GDP is different from Gross National Income (GNI), which is the total income earned by a country's citizens regardless of where they live.^[2] 

In this post, we highlight Kenya’s GDP in nominal and real terms as measured by current and constant prices, respectively. We also provide Kenya's GDP in the local currency unit (LCU) – Ksh and in US dollars. 

Quick Facts

• Kenya’s nominal GDP at current prices was Ksh 15.1 trillion in 2023.^[3]
• Kenya’s real GDP (constant 2016 prices) was Ksh 10.4 trillion in 2023.
• Kenya’s GDP at current US$ was $ 108 billion.^[4]
• Kenya’s GDP at constant (2015 US$) prices was $ 100 billion.
• Kenya's GDP, PPP (constant 2017 international $), was $263.7 billion in 2022.
• Kenya's GDP, PPP (current international $), was $311.5 billion in 2022.
• Kenya’s GDP grew by 5.6% in 2023.
• Agriculture accounted for 21.8% of Kenya’s GDP.

Kenya’s Gross Domestic Product in Kenya Shillings

In 2023, Kenya's nominal GDP was Ksh 15.1 trillion. The nominal GDP is measured at current prices and does not factor in inflation or deflation.^[5]

Kenya’s real GDP, measured in constant 2016 prices, was Ksh 10.4 trillion in 2023.

Unlike nominal GDP, real GDP factors inflation and deflation and reflects the actual quantity of goods and services produced in a given year.

Since real GDP factors in inflation and deflation, while nominal GDP does not, real GDP is a better indicator of a country's actual economic size. In the chart above, the blue line indicates Kenya's real GDP after controlling for changes in prices over time.

Read: The GDP of Kenya by County

Kenya’s real and nominal GDP in US Dollars

Kenya’s nominal GDP, as measured in current prices, was $108 billion. After taking into account inflation, Kenya’s real GDP was $100 billion in 2023.

Kenya’s GDP in terms of Purchasing Power Parity (PPP)

When taking into account the Purchasing Power Parity, Kenya’s real GDP in constant 2017 international dollars was $263.7 billion in 2022.

On the other hand, the nominal GDP (PPP) in current international dollars was $311.5 billion in 2022.

Note that Purchasing Power Parity (PPP) compares the value of money in different countries by examining how much a standard "basket of goods" costs in each country. It helps measure the cost of living and economic productivity across nations.^[6]

An international dollar is a made-up currency that has the same buying power as a US dollar in the United States. It is used to compare the prices of goods and services between countries, making it easier to understand differences in living standards and economies.^[7]

Kenya’s Annual GDP growth rate

Kenya's GDP grew by 5.6% in 2023, compared to 4.9% in 2022. The growth rate shows the percentage by which Kenya's economy expanded between 2022 and 2023.

After contracting during the Covid-19 pandemic, Kenya’s economy rebounded in 2021 and grew by 5.6% between 2022 and 2023.

Agriculture accounts for the largest share of GDP in Kenya

Kenya's economy comprises several broad industries such as agriculture, manufacturing, mining, transport, electricity supply, water and sewerage, ICT and more.

However, agriculture remains the most dominant industry in Kenya, with a GDP of Ksh 3.3 trillion in 2023, or 21.8% of Kenya's total GDP.

Crop growing is the largest agricultural sector, with a GDP of Ksh 2.3 trillion, or 15.4% of Kenya's overall GDP. Animal production, on the other hand, had a GDP of Ksh 570 billion, accounting for 3.8% of Kenya's overall GDP.

The second largest industry in Kenya is transport and storage, with a GDP of Ksh 2.1 trillion, or 13.6% of the country's overall GDP. Land transport has the highest GDP, at Ksh 1.8 trillion, accounting for 11.8% of the country's overall GDP. Air transport was 1.1% of the country's GDP, at Ksh 161.3 billion.

Real estate is Kenya's third-largest industry, with a GDP of Ksh 1.27 trillion and 8.4% of the country's total GDP.

The fifth-largest industry is finance and insurance, with a GDP of Ksh 1.18 trillion and 7.8% of Kenya's GDP. Financial activities account for 5.7% of Kenya's GDP, at Ksh 862.6 billion, while insurance accounts for 2.1% of GDP, at Ksh 317.8 billion.

Read: County contribution to manufacturing activities.

Manufacturing is the fifth largest industry in Kenya, with a GDP of Ksh 1.15 trillion, and accounts for 7.6% of the country's overall GDP. Food, beverages, and tobacco manufacturing account for 4.2% of Kenya's GDP, at Ksh 629.7 billion, while other manufacturing accounts for 3.4% of the overall GDP, at Ksh 519.1 billion.

Kenya’s real GDP by broad sector and industry

Real GDP takes into account changes in prices and better reflects the actual size of each industry in Kenya. As of 2023, Kenya's real GDP was based on constant 2016 prices.

Agriculture remains the most dominant industry in Kenya in real GDP terms at Ksh 1.78 trillion in 2023.

The agriculture sector grew by 6.5% in 2023, with the crop-growing industry growing by 6.4% and animal production by 9.7%.

Read: County contribution to agriculture, forestry, and fishing.

The real estate industry was the second largest, with a real GDP of Ksh 1.07 trillion. It grew by 7.3% in 2023.

The third largest industry was transport and storage, which had a real GDP of Ksh 1 trillion in 2023 and grew by 6.2% in that year.

Others include:  

1. Finance and Insurance – Ksh 990.6 billion (+10.1%).
2. Manufacturing – Ksh 848.5 billion (+2%).
3. Wholesale and Retail – Ksh 836.3 billion (+2.7).
4. Public administration and defence – Ksh 621.2 billion (+ 4.6%).
5. Construction – Ksh 592.4 billion (+3%).
6. Education – Ksh 501.3 billion (+3.1%).
7. ICT – Ksh 345.7 billion (+9.3%). 
8. Health – Ksh 231.5 billion (+4.9%).
9. Professional, scientific, and technical activities – Ksh 186.9 billion (+8.6).
10. Electricity supply – Ksh 182 billion (+2.9%).
11. Accommodation and food services – Ksh 137.2 billion (+ 33.6%).
12. Other services – Ksh 132.1 billion (+3.6%).
13. Mining and quarrying – Ksh 106.1 billion (- 6.5%).
14. Administrative and support services – Ksh 105.8 billion (11.1%).
15. Water supply and sewerage – Ksh 69.3 billion (+2.5%).
16. Activities of households as employers – Ksh 61.2 billion (+1.5%).
17. Arts, entertainment and recreation – Ksh 25.97 billion (+14%).

See Also

1. County contribution to agriculture, forestry and fishing
2. County contribution to manufacturing
3. County contribution to services
4. Kenya’s Gross National Income
5. Kenya GDP by County 
6. Kenya County GDP per Capita by County

References