Kenya's economy expands by 6.2pc in second quarter

Money Markets

A tea estate in Kericho. Kenya's economy expanded by 6.2 per cent in the second quarter of 2016 compared to 5.9 per cent, the Kenya National Bureau of Statistics has announced. PHOTO | FILE 

By BD REPORTER and NEVILLE OTUKI

Kenya's economy expanded by 6.2 per cent in the second quarter of 2016 compared to 5.9 per cent at the same period last year, the Kenya National Bureau of Statistics has announced.

The growth was largely driven by expansion in agriculture, forestry and fishing, transportation and storage, real estate, and wholesale and retail trade.

The performance puts Kenya on the path to achieving its full-year economic growth target of 5.9 per cent set by the Treasury.

The economy also defied high commercial banks interest rates which rose significantly to an average of 18.15 per cent during the second quarter of 2016 compared to 15.57 per cent in the same quarter of 2015.

At 6.2 per cent, this year’s second quarter growth is the highest in the past three years.

The value of exports of horticultural crops grew by 47.1 per cent in the quarter under review from Sh17.7 billion in the second quarter of 2015 to Sh26.0 billion.

Measured against the same quarter of 2015, the current account deficit recorded an improvement of 6.1 per cent to stand at Sh141.9 billion in the quarter under review.