GDP growth drops to 5.5pc on cooling construction

Money Markets

A road under construction. PHOTO | FILE 

By BD REPORTER

In Summary

• Agriculture is estimated to have expanded by 5.4 per cent during the second quarter of 2015 compared to a 2.1 per cent growth for a similar quarter in 2014.

Kenya’s economic growth slowed down to 5.5 per cent in the second quarter of 2015 from 6 per cent in the same period last year, the statistics bureau announced Wednesday.

A slowdown in construction, manufacturing and financial sectors sucked steam out of the economic engine but improved agriculture and higher electricity connections fired it on.

Growth of the construction sector decelerated from 16.6 per cent in 2014 to 9.9 per cent contributing significantly to the lower growth figures.

Agriculture

Agriculture is estimated to have expanded by 5.4 per cent during the second quarter of 2015 compared to a 2.1 per cent growth for a similar quarter in 2014.

Manufacturing expanded by 4.5 per cent during the quarter under review down from 8.3 per cent during the second quarter of 2014.

The accommodation and food services sector experienced a slower contraction of 0.8 per cent compared to a contraction of 19.3 per cent in the same quarter of 2014.

The transport sector grew by 6.2 per cent from 5.7 per cent.