Kenya’s econ­omy grows 6.2% in sec­ond quar­ter - statis­tian

Agri­cul­ture, tourism boosted the growth dur­ing the re­view pe­riod, KNBS said

The Star (Kenya) - - News Business - BY WEITERE MWITA @MwitaMartin

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’’.

HEZRON NJOROGE

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.

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