Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
In the first quarter of 2014 the country’s Gross Domestic Product (GDP) grew at 4.4 percent/FILE

Finance

Kenya’s economy records 5.8pc growth in Q2

In the first quarter of 2014 the country’s Gross Domestic Product (GDP) grew at 4.4 percent/FILE

In the first quarter of 2014 the country’s Gross Domestic Product (GDP) grew at 4.4 percent/FILE

NAIROBI Kenya Oct 13 – Kenya’s economy expanded by 5.8 percent in the second Quarter of 2014 compared to the second quarter of 2013, recording a 7.2 percent increase according to new data from the government.

In the first quarter of 2014 the country’s Gross Domestic Product (GDP) grew at 4.4 percent.

According to the latest data from the Kenya National Bureau of Statistics, the growth was mainly supported by robust growth in the construction sector at 18.9 percent, Manufacturing at 9.1 percent financial and insurance at 8.3 percent, Information Communication and Technology at 6.4 percent and wholesale at retail trade at 6.8 percent.

Merchandise trade deficit widened to Sh262 billion from Sh204 billion recorded in 2013, with the widening of trade balance attributed to increase in import expenditure.

Increase in imports of fuel and lubricants saw the Import bill increase by 22.5 percent to Sh403.4 billion in the second quarter of 2014 compared to Sh329.4 billion recorded same period last year.

Total exports value increased by 13 percent to Sh141 billion from Sh124.8 billion in 2013, while current account deficit worsened by 49.5 percent to Sh142 billion as a result of an increase in international services by eight percent from Sh50 billion in 2013 to Sh54 billion.

“Net inflows in capital and financial account increased by 25 percent to a surplus of Sh93.9 billion from Sh74.7 billion recorded in 2013. The increase was largely in financial account attributed to long term capital inflows from the sale of the Euro bond in June 2014,” the report stated.

This comes as the country rebased the economy to raise its GDP by 25 percent to Sh4.76 trillion from the previous Sh3.8 trillion.

The rebasing lifts average per capita income in Kenya to USD 1,246 (Sh111.26), effectively meaning that the country moves to lower middle income status.

With the rebasing of GDP, Kenya’s growth rate for 2013 has also been revised higher, to 5.7 percent growth in 2013 from an estimated 4.7 percent.

Advertisement. Scroll to continue reading.

According to economic experts the move will see Kenya’s credit metrics appear more positive as public debt ratio will be measured as a percentage of larger GDP making it decline.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...