Economy’s first quarter growth fastest in 5 years

Kenya has recorded the highest first-quarter economic growth in five years.

A woman picks coffee berries at a Nyeri farm. PHOTO | FILE 

In Summary

• The KNBS data shows agriculture, transport and mining also recorded improved growths during the quarter as manufacturing, construction and finance slowed down.

By GEORGE OMONDI, gomondi@ke.nationmedia.com

Kenya has recorded the highest first-quarter economic growth in five years, helped by good weather, improved security, continued investment in public infrastructure and a rebound of the tourism sector.
Data released yesterday by the Kenya National Bureau of Statistics shows the economy expanded by 5.9 per cent in the first three months of the year, compared to five per cent the same period last year.
The growth — second only to what was recorded in the first quarter of 2011 when the economy expanded by a higher rate of 7.6 per cent — has been attributed to expansion in all segments of the economy.
The KNBS data shows that agriculture, which accounted for 49 per cent of the production, expanded by 4.8 per cent in the first quarter compared to 2.9 per cent the previous period.
Improved security
“Agriculture showed marked improvement in the first quarter mainly buoyed by considerable growth in value added of key crops such as tea and horticultural crops,” the KNBS said in a statement.
Agriculture employs up to 80 per cent of workers in rural areas while also providing food to citizens and raw material the industry.
The economy has also gained from improved security that has encouraged Kenyans to engage in local tourism and buoyed source markets to lift travel advisories.
“The most notable improvement was a rebound in activities of accommodation and food services, which expanded by 12.1 per cent in the period under review compared to a contraction of 11.4 per cent during the same quarter in 2015,” the KNBS said in a statement.
While accommodation and food services accounted for a paltry one per cent of the first quarter production, the improved security may have had a wider multiplier effect as tourist arrivals grew significantly.
The number of international visitors increased 16.8 per cent to stand at 206,978 between January and March compared to a similar period last year, much to the relief of hoteliers.
The hoteliers had earlier cut jobs, slashed pay and closed shop, in the wake of 2014 travel alerts, as source markets avoided terrorism threats in the coastal towns