By CPA Peter Kibet Kitur
Integrating Development with Environmental Statistics
Kenya’s economy operates in a global environment marked by persistent inflationary pressures, high energy and food prices, and tightening monetary policies. While international and regional economies show moderate resilience, underlying vulnerabilities—particularly for developing nations—remained evident. Kenya experienced slower economic growth in 2024 than the previous year while navigating structural weaknesses in key sectors. At the same time, the country continued engaging in environmental reforms and sustainability efforts, partly in response to growing climate risks and global commitments to green transitions. This article provides an integrated overview of Kenya’s macroeconomic performance and its linkages with environmental considerations. It also highlights the state of environmental statistics production and the challenges in strengthening data systems critical for planning and monitoring sustainable development initiatives.
The global economy in 2024 exhibited commendable resilience, growing by 3.2% despite persistent challenges such as high energy and food prices and the continuation of tight monetary policies in several regions. Advanced economies registered a modest growth of 1.7% as they closed in on pre-pandemic output levels. Emerging Market and Developing Economies (EMDEs) expanded by 4.2%, supported by strong domestic demand and trade recovery. Sub-Saharan Africa grew by 3.8%, benefitting from eased supply constraints and favourable weather conditions. At the same time, the East African Community (EAC-5) region, which includes Kenya, posted a 5.4% growth, driven by public investment, services sector productivity, and expanding intra-regional trade.
Against this backdrop, Kenya’s economy remained steady, though slightly subdued. Real GDP grew by 4.7% in 2024, down from a revised 5.7% in 2023. As per the Kenya Bureau of Statistics 2025 economic report, this deceleration was primarily attributed to contractions in the construction sector (-0.7%) and mining and quarrying (-9.2%), due to reduced cement consumption and lower mineral production. Nonetheless, several key sectors posted strong growth: financial and insurance activities (7.6%), information and communication (7.0%), agriculture, forestry and fishing (4.6%), and real estate (5.3%). Other notable performers included accommodation and food service (25.7%), public administration (8.2%), and transport and storage (4.4%).
Kenya’s nominal GDP increased from KSh 15.03 trillion in 2023 to KSh 16.22 trillion in 2024. Inflation eased sharply from 7.7% to 4.5%, mainly due to declining food prices. Credit to the private sector increased marginally to KSh 4.75 trillion, while interest rates on commercial bank loans rose to 16.89%. The Central Bank Rate (CBR) was adjusted throughout the year to maintain macroeconomic stability. The Nairobi Securities Exchange (NSE) rebounded on the financial markets front, with share volumes rising from 3.7 billion to 4.9 billion and the NSE 20-Share Index climbing from 1,501 to 2,011 points. Notably, the current account deficit narrowed to KSh 208.9 billion, down from KSh 382.7 billion in 2023, reflecting improved export performance.
A key feature of Kenya’s economic strategy in 2024 was the increasing emphasis on the green economy. Anchored in its Vision 2030 and aligned with global sustainability goals, Kenya accelerated its shift toward renewable energy, climate-resilient agriculture, and environmentally sustainable development. Investment in geothermal, wind, and solar energy played a vital role in cushioning the country from global energy shocks and lowering emissions. Climate-smart agricultural practices and reforestation programs also supported food security while preserving biodiversity. The financial sector progressed toward green financing and ESG-aligned lending, while urban development leaned toward sustainable infrastructure, including waste-to-energy projects and electric mobility solutions.
This shift toward sustainability has also highlighted the importance of reliable and timely environmental statistics. Increasing environmental challenges arising from population pressure, industrialisation, unsustainable land use, and climate change have created a pressing demand for high-quality data to inform decisions at the national and subnational levels. Recognising that human well-being and economic development are inextricably linked to the environment, Kenya, in collaboration with regional and global partners, has intensified efforts to enhance the production of environmental statistics.
The Framework for the Development of Environment Statistics (FDES 2013) has provided a structured approach for collecting, compiling, and analysing environmental data. A national assessment by the Kenya National Bureau of Statistics (KNBS) and the East African Community (EAC) Secretariat in 2015 revealed several barriers to effective environmental statistics development, including insufficient financial and human resources, weak institutional coordination, and a lack of standardised data collection tools. Following this, Kenya developed a roadmap to implement the FDES. It received technical support from the United Nations Statistics Division (UNSD) to build institutional capacity through data review processes, capacity-building workshops, and integrated assessment tools.
The Environment Statistics Technical Committee (ESTeC) was established to operationalise this framework, bringing together key data producers and users across sectors. The committee held quarterly meetings, designed data templates based on FDES guidelines, and coordinated national data collection. Data sources included KNBS surveys, censuses, and annual reports from environment-related institutions. After compiling the draft, Estec validated the data and published it in a national compendium of environmental statistics.
This data framework has helped define and standardise critical environmental terms and indicators—such as climate change, biodiversity, pollution, sustainable use, afforestation, and greenhouse gas emissions—thus enhancing Kenya’s ability to monitor environmental quality and trends. It also captures the country’s physical, biological, and chemical environmental conditions and includes weather, climate, soil, air, water, flora, fauna, and sanitation metrics.
In conclusion, Kenya’s 2024 performance reflects a nation balancing economic resilience with environmental responsibility. While navigating global economic uncertainties, Kenya has made notable progress in greening its economy and institutionalising environmental data systems. Continued investments in renewable energy, sustainable agriculture, environmental protection, and data-driven policy formulation will be vital to maintaining growth and ensuring that development is inclusive, equitable, and sustainable for future generations.
CPA Peter Kibet Kitur is a Tax consultant with Bon and Drew Associates, serves in public sector, is the ICPAK Central Rift Region’s Branch Chairman and a member of ICPAK’s Devolution subcommittee.
