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Kenya

Kenya’s economy expands by 6.2pc in Q2

Tourism was the best performer in the period under review at 15 percent continuing with its recovery route while manufacturing experienced the slowest growth at 3.2 percent/FILE

Tourism was the best performer in the period under review at 15 percent continuing with its recovery route while manufacturing experienced the slowest growth at 3.2 percent/FILE

NAIROBI, Kenya, Sep 30 – Kenya‘s economy has expanded by 6.2 percent in the second quarter of 2016 according to the latest data by the Kenya National Bureau of Statistics (KNBS).

Tourism was the best performer in the period under review at 15 percent continuing with its recovery route while manufacturing experienced the slowest growth at 3.2 percent.

The agriculture sector grew by 5.5 percent compared to 4 percent recorded in the same period last year owing to well distributed rainfall that greatly enhanced agricultural production.

“The quantity of coffee and tea grew by 16.3 and 49.6 percent respectively in the second quarter of 2016. Similarly, the value of exports of horticultural crops grew significantly (47.1 percent) in the quarter under review from Sh17.7 billion in the second quarter of 2015 to Sh26 billion. This growth was on account of considerable increases in the value of exported cut flowers and vegetables especially in the month of June where the revenue earned more than doubled,” the new report indicates.

Low oil prices and road network improvement supported the transport sector’s accelerated growth rate of 8.8 percent in the quarter under review compared to a 6.8 percent growth in the same period last year.

The construction sector recorded a slowed growth of 8.2 percent compared to 11.2 percent growth in the second quarter of 2015 attributed to reduced activities in the construction of the Standard Gauge Railway (SGR) as its completion draws nearer.

On a slower growth also includes the financial and insurance sector whose growth was at 7.5 percent compared to a growth of 7.7 percent registered in a similar period of 2015.

Total domestic credit increased by 14.7 percent in the period compared to an increase of 19.5 percent in the same quarter of 2015.

“Credit to the private sector grew by 5.1 per cent from Sh349.2 billion in the second quarter of 2015 to Sh367.1 billion in the second quarter of 2016. Similarly, credit to the central government grew by 23.4 percent to stand at Sh722.1 billion in the quarter under review,” the report states.

The Nairobi Securities Exchange recorded a decline in market activity with value of shares traded, declining to a total of Sh37.0 billion from Sh60.2 billion during the second quarter of 2015.

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The total number of transactions at the Nairobi bourse also declined from a high of 105,297 during the second quarter 2015 to a low of 75,666 recorded during the second quarter 2016.

In the first quarter of 2016, the Kenya economy grew by 5.9 percent compared to 5 percent growth of the same period in 2015 in with tourism being the most improved.

The most notable improvement was a rebound in activities of accommodation and food services which expanded by 12.1 percent in the period under review compared to a contraction of 11.4 percent during the same quarter in 2015.

Agriculture grew by 4.8 percent, manufacturing and construction registered slowed growth at 3.6 percent and 9.9 percent respectively compared to 4.1 per cent and 12.6 per cent in 2015.

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