Important sectors of Kenyan economy record positive growth

Thursday, July 2, 2015

advertisements

NAIROBI -- Kenya’s economic growth increased to 4.9 per cent in the first quarter 2015 compared to 4.7 per cent during the same period in 2014, the statistics bureau has said.

The Kenya National Bureau of Statistics (KNBS) said the slight growth was buoyed by strong expansions of activities of construction, finance and insurance, information and communication, electricity and water supply, wholesale and retail trade, and transport and storage.

"All the sectors of the economy recorded positive growths of varying magnitudes except the hotels and restaurant whose growth contracted," KNBS said in a statement issued in Nairobi.

This was the fifth successive decline in tourism growth which is mainly attributed to low hotel occupancy rates arising from insecurity concerns mainly by international visitors.

Kenya’s tourism has suffered a decline in the number of tourists arriving since September 2011 when the Somali militant group, the 'al-Shabaab', carried out the kidnappings of tourists in the Lamu archipelago and the kidnapping of the Spanish volunteers.

However, the government has expressed optimism that the recently lifting of travel advisory by British government is likely to revive the ailing tourism sector.

According to the bureau, the agriculture, forestry and fishing sector expanded by 4.4 per cent during the quarter under review compared to 2.2 per cent in 2014 first quarter.

"This growth was reflected in the increased use of agricultural inputs during the quarter," it said.

Increased demand for fertilizer, a key input for agriculture sector, was the most notable as reflected by its import which grew by 18.4 per cent from 224.6 million metric tonnes in first quarter 2014 to 265.9 million metric tonnes during the first quarter 2015.

KNBS said the performance within the horticulture subsector was mixed, with cut flower exports rising by 11.7 percent while vegetable exports declined by 3.3 per cent from 16.6 million metric tonnes to 16.1 million metric tonnes.

During the review quarter, tea production and coffee sales declined by 27.2 per cent and 8.6 per cent, respectively.

The fall in tea production is attributed to inadequate rains and frost that was reported in some tea zones. However, export of tea increased by 7.2 per cent to 117.8 million metric tonnes during the first quarter of 2015 compared with the same quarter of 2014.

Tea and coffee generated an estimated value of 318 million U.S. dollars from exports during the review quarter compared to 282 million dollars during the same period in 2014.

The sector recorded a slowed growth of 3.5 per cent in the first quarter compared to a growth of 6.4 per cent over a similar period in 2014.

The decelerated growth was attributed to decline in manufacture of tobacco, processing of canned fruits, maize meal and sugar.

On the other hand, growth in the sector was supported by assembly of motor vehicles, production of beer, manufacture of galvanized sheet, production of soft drinks and cement.

KNBS said construction grew by 11.3 percent in the first quarter compared to a growth of 7.6 per cent in a similar period in 2014.

The growth was mirrored in cement consumption which expanded by 15.5 per cent during the review period.

The electricity and water sector expanded by 8.4 per cent compared to a growth of 3.9 per cent in the first quarter of 2014.

During the quarter under review, the transport sector grew by 6. 0 per cent compared to 3.8 per cent growth recorded in the same quarter of 2014.

The accelerated growth was attributed to increased demand for freight transport and a fall in oil prices.

Consequently, the consumption of light diesel increased from 400.5 million tonnes in the first quarter of 2014 to 451.7 million tonnes during the review period.

Home
Email

Hiiraan Online