Kenya’s transportation and storage sector recorded solid growth in 2024, reflecting increased port activity, air travel and pipeline throughput, even as road safety concerns and declining rail passenger numbers persisted, according to the Economic Survey 2025.
The value of output in the transportation and storage sector rose by 6.4 per cent to Sh 3.48 trillion in 2024, up from Sh 3.28 trillion in 2023.
Road transport remained the dominant sub-sector, contributing 75.1 per cent of total output, although its share declined slightly from 76.9 per cent the previous year.
Government spending on road maintenance increased by 20.1 per cent to Sh 80.1 billion in 2023/24.
However, the number of newly registered motor vehicles dropped sharply by 21.4 per cent to 93,646 in 2024, while registrations of motorcycles, autocycles and three-wheelers declined by 4.7 per cent.
At the same time, reported road traffic accidents rose by 11.8 per cent to 11,173 cases, highlighting ongoing road safety challenges.
Freight transported through the Metre Gauge Railway (MGR) increased to 1.03 million tonnes in 2024, but passenger numbers declined by 26.9 per cent.
Passenger traffic on the Standard Gauge Railway (SGR) also fell by 10.3 per cent to 2.45 million passengers.
Despite the decline, passenger revenue from the SGR surged by 39.4 per cent to Sh 4.1 billion, attributed to pricing adjustments and improved service efficiency.
At the Port of Mombasa, cargo throughput rose by 13.9 per cent to 41.0 million metric tonnes, while container traffic grew by 23.5 per cent to 2.0 million TEUs, underscoring Kenya’s growing role as a regional logistics hub.
Air transport also expanded, with passengers handled at Kenyan airports increasing by 5.1 per cent to 12.83 million in 2024.
International passenger traffic rose by 9.6 per cent, reflecting the strong recovery of tourism and business travel.
Pipeline transport of white petroleum products grew by 4.5 per cent to 8.51 million cubic metres, while petroleum products in transit increased by 8.0 per cent.
In the maritime sector, licensed small vessels rose by 60.5 per cent, although newly registered seafarers declined by 5.5 per cent.
The Information and Communication Technology (ICT) sector continued its strong growth trajectory, with output increasing by 8.3 per cent to Sh 701.3 billion in 2024.
Mobile subscriptions rose to 71.4 million, translating to a penetration rate of 136.1 per 100 inhabitants, while mobile money subscriptions grew by 11.3 per cent to 42.3 million.
Data usage accelerated significantly, with mobile broadband roaming rising by 35.4 per cent. Internet subscriptions increased by 10.5 per cent to 57.8 million, pushing internet penetration to 110.3 users per 100 inhabitants.
However, the rapid digital expansion came with challenges. Reported online crimes nearly doubled in 2024, largely linked to system vulnerabilities, while e-waste generation increased to 53.6 thousand metric tonnes.
At Konza Technopolis, revenue rose to KSh 252.4 million in 2024, with the number of investors increasing to 70. Annual investments grew by 27.3 per cent, pushing cumulative investment to Sh 83.5 billion by the end of 2024.
Education sector expenditure is projected to decline slightly to Sh 594.2 billion in 2024/25, although development spending is expected to rise by 9.8 per cent.
Enrolment increased across most education levels, with TVET enrolment growing by 10.4 per cent and university enrolment projected to reach 629,100 students in 2024/25.
In the health sector, national government spending is projected to rise by 13.4 per cent to Sh 122.0 billion, while county health expenditure is expected to increase by 16.8 per cent.
The number of health facilities and hospital beds expanded significantly, improving access to healthcare services. Encouragingly, the number of adolescents presenting with pregnancy at their first antenatal care visit declined by 4.8 per cent in 2024.
Reported crime declined by 3.5 per cent in 2024, while child protection cases dropped by 10.8 per cent.
The Ethics and Anti-Corruption Commission traced assets worth Sh 16.0 billion, recovering Sh 2.9 billion during the year.
Government spending on social protection increased to Sh 43.7 billion in 2024/25, supporting vulnerable groups through cash transfer programmes.
However, disbursements through affirmative action funds such as WEF, Uwezo Fund and YEDF are expected to decline, alongside a reduction in the number of beneficiaries.
The global economy is projected to grow by 3.3 per cent in 2025, supported by easing inflation, improved supply chains and stronger performance in major economies.
Kenya’s economy is expected to remain resilient, driven by a strong services sector, enhanced agricultural productivity and a stable macroeconomic environment.
With inflation projected to remain within the government’s target range and interest rates expected to continue easing, the outlook suggests improved private sector credit growth, sustained investment and inclusive economic expansion under the Bottom-Up Economic Transformation Agenda.
Missing man found dead in his house in Villa, Embakasi, Nairobi
