Kenya Defense Forces arrive at the Westgate mall following a terrorist
attack last year. Increased insecurity has been blamed for a dip in the
country’s growth rate. Photo/FILE
By George Omondi
In Summary
- Data released by the Kenya National Bureau of Statistics Monday night showed that growth in the labour intensive agriculture was 2.7 per cent, down from 6.8 per cent last year.
- Although hotels and restaurants improved from last year’s contraction of 12.8 per cent, the fragile sector’s growth was negative three per cent.
- Manufacturing sector recorded a higher overall growth of five per cent during the period to March compared to 2.5 per cent last year.
Bad weather and insecurity pulled down overall growth
to 4.1 per cent in the first quarter of 2014 from 5.2 per cent over the
corresponding period last year, with agriculture, communications and
finance recording the sharpest slow down.
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Data released by the Kenya National Bureau of Statistics
Monday night showed that growth in the labour intensive agriculture was
2.7 per cent, down from 6.8 per cent last year.
“A major factor that constrained economic growth
during the quarter was the erratic weather pattern that resulted in
depressed agricultural output,” KNBS said.
Although hotels and restaurants improved from last
year’s contraction of 12.8 per cent, the fragile sector’s growth was
negative three per cent.
“The deceleration in growth of the hotel industry
was largely due to insecurity concerns coupled with negative travel
advisories by some key tourist source countries,” the KNBS states.
Transport, trade, manufacturing, wholesale and
retail trade, mining and electricity showed positive growth trends.
Manufacturing sector recorded a higher overall growth of five per cent
during the period to March compared to 2.5 per cent last year.
Transport and communication sector expanded by six
per cent compared to a growth of 5.6 per cent in 2013 while electricity
and water production grew by 4.4 per cent compared against a contraction
of 0.8 per cent in 2013.
“There was a substantial decrease in hydro
generation of electricity which was matched by a significant increase in
thermal generation and, therefore, impacted negatively on the growth of
the sector. However, generation of geothermal power expanded rapidly
and, therefore, more than compensated for the decline in hydro
generation,” the report states.
Suppressed external demand during the review period
saw export of vegetables contract by 20.3 per cent in 2014 to 16,600
tonnes while that of fruits increased by 18.5 per cent to reach 9,200
tonnes over the same period.
Quantities of cut flower exported declined marginally over the review period.
Tea production decreased by 4.4 per cent compared
with a growth of 61.8 per cent in a similar quarter in 2013. Coffee and
sugarcane output recorded significant growths while international
auction prices of coffee and tea decreased compared to the same quarter
in 2013.
During the period to March, Finance recorded a
slowed growth of 8.3 per cent from 12.1 per cent. Construction was not
spared with a growth of 4.9 per cent down from 7.4 per cent in the first
quarter of March 2013.
“The growth in the construction sector was
reflected in cement consumption which expanded by 17.2 per cent during
the review period,” the KNBS states.
The general drop in Quarter One performance mirrors
the forecast released by World Bank last week which predicts slower
than expected growth for 2014.
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