Uganda Outshines Kenya in 2024 EAC Economic Growth Rankings
Uganda has emerged as one of the top-performing economies in East Africa for 2024, registering a 5.7% real GDP growth rate, according to the latest Economic Survey from the Kenya National Bureau of Statistics (KNBS). This performance places Uganda ahead of Kenya (4.7%) and South Sudan (4.2%), reaffirming its growing influence in the region.
Uganda’s economic growth was only surpassed by Rwanda (7.0%) and Tanzania (6.1%), with Burundi also posting a strong 6.0% growth. The region, as a whole, maintained an average growth rate of 5.4%, well above the global average of 3.2% and Sub-Saharan Africa’s 3.8%.
Key Factors Behind Uganda’s Strong Growth
While the report didn’t detail Uganda’s sectoral performance, analysts credit its resilience to several key drivers:
- Post-pandemic recovery in the services sector
- Major infrastructure investments, including the Karuma hydropower project
- Expansion in agriculture and manufacturing
- Progress in the oil and gas sector
- Rising cross-border trade and regional integration
These combined forces have helped Uganda weather global economic uncertainties and positioned it as a regional economic leader.
Kenya’s Slower Pace
By contrast, Kenya’s growth slowed from 5.7% in 2023 to 4.7% in 2024, affected by mixed sectoral performance. While finance and insurance expanded by 7.6%, construction and manufacturing underperformed amid inflationary pressures and an elevated central bank rate averaging 11.3%.
Kenya remains the second-largest economy in East Africa but struggles with a high trade deficit of KSh 1.59 trillion and a per capita GDP of $2,296, highlighting vulnerabilities in its macroeconomic stability.
Uganda Remains Kenya’s Largest African Export Market
In terms of trade, Uganda retained its title as Kenya’s top African export destination, absorbing KSh 125.9 billion worth of goods in 2024. This figure is nearly double that of Tanzania, which took in KSh 67.2 billion, underscoring Uganda’s strategic importance to Kenyan trade and the East African Community (EAC) as a whole.
East Africa: A Resilient Growth Zone
The EAC bloc continues to outperform global trends, fueled by robust investment, regional cooperation, and increasing self-reliance. As countries like Uganda and Rwanda strengthen infrastructure, energy, and industrial capacity, East Africa is rapidly emerging as a model of economic resilience in a volatile world.
