NAIROBI, Kenya, 29 Sept – Kenya’s agriculture-dependent economy experienced speed bumps in the second quarter of 2017 growing by 5 percent compared to 6.3 percent due to adverse weather conditions.
Latest estimates by the Kenya National Bureau of Statistics show the quarter was characterized by sharp increases in food prices and a notable rise in international oil prices with inflation hitting a high of 11 percent.
September inflation has however dropped to 7.6 percent from 8.04 percent in the previous month due to a normalization of food distribution that had been disrupted during the August general elections.
In addition to agriculture, forestry and fishing other sectors of the economy that slowed down the economy include manufacturing, electricity and financial intermediation.
“The slowed but robust growth was supported by activities of transport and storage, real estate, ICT, accommodation and food services and a slightly improved growth in wholesale and retail trade,” reads a statement by KNBS.
The spiral effect of poor and delayed rains was felt in cost of production of goods as electricity generation shifted to the more expensive thermal generators compared to other sources.
Growth in financial services, which recorded a growth of 4.3 percent compared with 8.1 percent same period last year, was also dampened by the effect of continued slow uptake of credit.
Meanwhile, the Kenyan shilling marginally depreciated against the US dollar but appreciated against the sterling pound, and unchanged against the Euro and the Yen.