Economic growth slows down to 5.3 pc as tourism struggles

Money Markets

Devolution and Planning Cabinet Secretary Anne Waiguru speaks during the release of the 2015 Economic Survey at KICC, Nairobi, on April 29, 2015. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

By GEORGE OMONDI, omondi@ke.nationmedia.com

In Summary

• Top performing sectors included building and construction which expanded by 13.1 per cent, transport which grew by 13.7 per cent and ICT which increased by 13.4 per cent last year.

Kenya’s economy recorded slower growth of 5.3 per cent last year compared to 5.7 per cent in 2013.

The Kenya National Bureau of Statistics attributed the slow growth to a decline in tourism and lower than expected expansion of the agricultural and manufacturing sectors.

Tourism earnings fell 7.3 per cent to Sh87.1 billion in 2014, down from Sh94 billion the previous year as a spate of insecurity and travel advisories issued by key source markets continued to bite.

Agriculture, which contributed 27.3 per cent of the GDP, expanded by a modest 3.5 per cent from Sh795 billion in 2013 to Sh822.5 billion last year. This growth was lower than the 5.2 per cent recorded the previous year.

Similarly, manufacturing which accounted for 10 per cent of GDP, grew by 3.4 per cent to Sh537.3 billion last year compared to a growth of 5.6 per cent in 2013.

Top performing sectors included building and construction which expanded by 13.1 per cent, transport which grew by 13.7 per cent and ICT which increased by 13.4 per cent last year.

“The performance of agriculture in 2015 is likely to remain close to the 2014 level after the country experienced depressed rainfall in the first quarter,” planning and devolution secretary Anne Waiguru said when she presided over the release of the Kenya Economic Survey 2015.

“Other macro-economic indicators are projected to remain stable and supportive of growth.”

The national statistics body has projected a growth of 6.2 per cent for 2015.