Kenya’s economy grows 6.2% in second quarter - statistian
Agriculture, tourism boosted the growth during the review period, KNBS said
Kenya’s economy grew at a faster pace in the second quarter of this year compared to 2015, driven by a strong growth in agriculture and the recovering tourism sector.
The second quarter Gross Domestic Product and Balance of Payments report shows the economy expanded by 6.2 per cent compared to 5.9 per cent over a corresponding period last year.
Agriculture posted a 5.5 per cent growth compared to a revised growth of four per cent in 2015, the report published on Friday by the Kenya National Bureau of Statistics shows.
“The period under review was char- acterised by adequate and well distributed rainfall that greatly enhanced agricultural production. Notably, the quantity of coffee and tea grew by 16.3 and 49.6 per cent, respectively, “KNBS said.
The value of horticulture exports grew to Sh26 billion from Sh17.7 billion, a 47.1 per cent growth, with Kenya commanding a 38 per cent of all cut flower imports into the EU.
“This growth was on account of considerable increases in the value of exported cut flowers and vegetables especially in the month of June,” the report states.
During the period under review, the accommodation and food service, which falls under tourism sector, grew by 15.3 per cent compared to a decline of five per cent in the same quarter of 2015.
Tourist arrivals through the two main airports increased to 186,685 from 170,374 in the same period last year, a 9.6 per cent growth.
The statistician also pegged the country’s growth on forestry, fishing, transportation, storage, real estate, wholesale and retail trade.
The manufacturing sector however failed to leverage on the cheaper oil prices to accelerate its growth. It experienced the slowest growth at 3.2 per cent during the review quarter.
The transport sub-sector rode on the lower oil prices especially diesel, to expand at a faster pace of 8.8 per cent compared to a 6.8 per cent last year.
The country’s current account deficit contracted by 6.1 per cent to Sh141.9 billion from Sh 151.2 billion in the same period last year, signaling an improved balance of trade. ‘‘Mining and quarrying; electricity and water supply; and information and communication sectors recorded notable improvements in their growths’’.
Tourists negotiate prices with traders at the Capital Centre mall during the open-air maasai market day.The market trades in curios, paintings, drawings, clothes, jewellery and woodcarvings.