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Kenya’s economic growth slowed in Q1 of 2019
NAIROBI, June 29, 2019 (BSS/Xinhua) – Kenya’s economy was subdued in the
first quarter of 2019, growing by 5.6 percent as compared to 6.5 percent in
the first three months of 2018, the government statistics agency said Friday.
The growth, which was significantly slower, was mostly supported by growth
in the service-sector industries such as wholesale and retail trade,
transportation, accommodation and food services, financial and insurance
activities, the Kenya National Bureau of Statistics (KNBS) said.
“The quarter was characterized by slowdown in agricultural activities
following delay in the onset of long rains. The agriculture, forestry and
fishing sector grew by 5.3 percent, compared to a growth of 7.5 percent in
the first quarter of 2018,” the KNBS said.
The slowdown in agricultural growth affected agro-processing and led to
slower manufacturing activities.
The KNBS noted that the agricultural sector expanded by 5.3 percent during
the period, compared to 7.5 percent in the same quarter of 2018.
“Nevertheless, the sector’s performance was supported by a 6.6 percent
growth in volume of tea produced, from 99,800 metric tons in the first
quarter of 2018 to 106,300 metric tons during the period under review,” it
said.
In the horticulture sub-sector, the volume of cut flowers, fruits and
vegetables grew by 3.7 percent, 22.2 percednt and 0.9 percent respectively.
“The sector’s performance was hampered by contractions in production of
coffee and sugarcane during the same period,” the KNBS said.
The manufacturing sector is estimated to have grown by 3.2 percent in the
first quarter of 2019, compared to a growth of 3.8 percent in the first three
months of last year.
“The growth was curtailed in both manufacture of food and non-food
activities. In the manufacture of foods products, growth was curtailed by
manufacture of sugar, prepared preserved fish and processing of coffee, which
recorded contractions in the review period,” the bureau said.
In the manufacture of non-food products, growth was held back by
manufacture of cement and of leather products that fell during the period.
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KEENYA-ECONOMY-GROWTH 2 LAST NAIROBI
“However, growth in the manufacture of food products sub-sector was
supported by manufacture of bakery products, processing of tea, manufacture
of vegetable oils, fats and beer,” the KNBS noted. “In the non-food sub-
sector, growth was mainly supported by assembly of motor vehicles.”
The construction sector grew by 5.6 percent, compared to 6.6 percent in
the corresponding quarter of 2018.
“The growth was supported by the continued construction of the second
phase of the Standard Gauge Railway and other public infrastructural
developments especially road construction,” it said. “Consumption of cement,
which is an indicator of construction activities, declined by 3.1 percent.”
“The performance of transportation and storage sector recorded a slower
growth of 6.7 percent in the first quarter of 2019, compared to 8.5 percent
registered in the same period of 2018,” the KNBS said.
The financial and insurance sector recorded a slower growth of 5 percent
in the quarter under review, down from 5.2 percent in the corresponding
quarter of 2018.
However, the KNBS said the macroeconomic factors were favorable to growth
during the quarter under review.
“The average inflation in the period under review eased to 4.40 percent,
from 4.49 percent in the first quarter of 2018. The Kenya shilling
strengthened against all its major trading currencies during the quarter
under review, compared to the same quarter of 2018,” it said.
KNBS director-general Zachary Mwangi said during the period, Kenya’s
current account deficit narrowed to 78.8 billion shillings (772 million U.S.
dollars), down from 1.15 billion dollars.
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