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Kenya: Economic growth slows as agriculture, industry activity lag

Kenya: Economic growth slows as agriculture, industry activity lag

Kenya

hKenya’s economic growth has slowed to 5.7% in the third quarter of 2016, compared to six percent posted in the same quarter in 2015, according to the country’s statistics office.

The just released Kenya National Bureau of Statistics (KNBS) report says that the economic growth was well spread, although most of the sectors of the economy recorded slowed growth.

The third quarter performance is the lowest this year after the first quarter recorded 5.9 per cent growth and 6.2 per cent for the second quarter.

Kenya is generally perceived as Eastern Africa’s bub for Financial, Communication and Transportation services. It’s major economic sectors include, agriculture, industrial manufacturing, energy, tourism and financial services. As of 2015 estimates, Kenya had a GDP of $70 billion.

Tourism, along with tea, horticulture and remittances, are Kenya’s leading sources of foreign exchange.

In 2015, East Africa’s biggest economy struggled with a number of challenges including attacks blamed on Somalia’s al Shabaab militants that scared away tourists and eroded foreign exchange earnings in the sector.

Growth in the finance sector slowed to 6.1 percent in the quarter under review from 10.3 percent in the same period of 2015, while the transport sector rose to 10.3 percent from 9.4 percent, KNBS said.

The Finance Ministry forecasts the economy will grow 6 percent in 2016 and by 7 percent a year in the medium term, compared with 5.6 percent last year.

The statistics office said the current account deficit shrank 10.4 per cent to 100.6 billion shillings ($983.86 million) during the quarter.

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