Kenya’s Informal Sector Created 713,000 jobs in 2015

Kenya’s economy grew by 5.6 percent last year, slightly faster than the 5.3 percent growth recorded in 2014 according to the Kenya National Bureau of Statistics on Tuesday.

“This expansion was as a result of significant growth in some key sectors among them agriculture; construction; real estate; and financial and insurance,” as per the Economic Survey 2016.

“However, growths in mining and quarrying; information and communication; and wholesale and retail trade decelerated during the same period. Accommodation and food services was the only sector whose growth contracted by 1.3 per cent which was however an improvement from the previous year decline of 16.7 per cent,” the report states.

The Agriculture sector grew 5.6 percent in 2015 from 3.5 percent the previous year partly influenced by abundant rainfall.

Further, KNBS said in 2015, total employment outside small-scale agriculture and pastoralist activities increased by 5.9 per cent to 15,160.8 thousand persons.

“The economy generated a total of 841.6 thousand jobs of which 128.0 thousand jobs were in the modern sector while 713.6 thousand were in the informal sector, during the period under review.”

The Manufacturing grew by 10.3 per cent last year while agriculture grew 5.6 per cent in 2015 compared to 3.4 per cent in 2014. The economy improved given it improved by 5.3 per cent in 2014.

Going forward, KNBS Kenya’s economy in 2016 will have an upward  current growth trajectory.

“The expected sustenance of growth momentum by most of the economic activities is likely to boost credit uptake and therefore favour the financial and insurance activities.

The construction industry is also expected to maintain an increased role in the creation of value addition due to the ongoing public infrastructure development and continued investment in fixed assets by the private sector.”

Similar to Cytonn Investment’s projection of a low inflation rate supported by lower global oil prices, KNBS is of the view that, “Fuel prices are expected to remain at around the level experienced during the first quarter of 2016 and therefore help contain inflation within the Central Bank’s target.”