Workers operate a tea picking machine at a private tea plantation in
Kericho County in Kenya’s Rift Valley. Tea is among crops that benefited
from good rainfall, boosting growth in the agricultural sector. PHOTO |
NMG
Kenya’s economy is estimated to have grown by 6.3 per cent in
the three-month period to June 30, compared with 4.7 per cent over the
same period last year, buoyed by agriculture and the services sector.
This is the highest quarterly growth in five years. In 2013, the country posted a second quarter growth of 7.5 per cent.
Provisional
data by the Kenya National Bureau of Statistics shows that the
country’s external debt increased by Ksh265.5 billion ($2.65 billion)
during the three-month period. This was largely due to the government’s
increased uptake of commercial loans amounting to Ksh906.4 billion
($9.06 billion).
The public and publicly-guaranteed
external debt increased to Ksh2.56 trillion ($25.6 billion) during the
period under review, from Ksh2.29 trillion ($22.9 billion) in the same
period last year.
According to the KNBS Quarterly GDP
report released last week, the accommodation and food service and
information and communication technology sectors recorded the highest
growths of 15.7 per cent and 12.6 per cent, respectively, while
agriculture recorded a growth rate of 5.6 per cent from 0.8 per cent
last year, due to favourable weather conditions.
Kenya's economic growth rate
GDP growth rate
The agricultural sector was boosted by growth in the production
of key crops that benefited from sufficient rainfall, including tea,
coffee, sugarcane and horticultural crops such as fruits, whose exports
increased during the period.
The dairy sector remained
vibrant growing at 6.1 per cent compared with a 15.9 per cent decline in
the same period last year, with the volume of milk delivered to
processors increasing to 152 million litres from 143.2 million litres.
Accommodation
and food service activities increased by 15.7 per cent compared with
12.6 per cent in the same period last year, mainly due to improved
security situation after a competitive electioneering period coupled
with aggressive marketing strategies.
According to the
report, the growth in accommodation services was due to improved hotel
occupancy rates in various tourist zones.
Expectations on economic growth in different sector (%)
Traders most optimistic in Kenya's economic prospect in 2018
May-18
March-18
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Trade
Real Estate,building and construction
Finance and Insurance
Manufacturing
Tourism (Incl Hotels)
Agriculture
The
manufacturing sector expanded by 3.1 per cent compared with 0.2 per cent
contraction in the same period last year, largely due to the
agro-processing from increased agricultural production.
However,
the construction and financial services sectors declined during the
period. The financial and insurance activities sector slowed down to 2.3
per cent in the quarter under review, from 3.5 per cent in the second
quarter of 2017. The construction sector slumped to 6.1 per cent from
9.5 per cent.
Activity on the Nairobi Securities Exchange also maintained a downward trend for the third year in a row.
According
to the report, the NSE 20 Share Index dropped by 8.9 per cent to stand
at 3,286 points during the three months’ period from 3,607 points in the
same period last year.
“Over the past three years,
activities of the Nairobi Securities Exchange have remained generally
suppressed, pointing to a slowdown in the activities of the market,”
said KNBS.
During the period, the economy was hit by
substantial rises in the prices of fuels and transportation charges due
to an increase in global oil prices, which rose by 45.2 per cent.
East African countries economic outlook
Kenya and Tanzania growth rate is predicted to drop in 2018 while Uganda's is expected to rise from 2.3% to 5.9%
Kenya
Uganda
Tanzania
6.70
2018 GDP Growth Prediction
2.00
4.00
6.00
2016 Real GDP Growth
2017 GDP Growth estimates
2018 GDP Growth Prediction
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