All Economy Sectors Post Positive Growth in Q1 of 2016

Trading activity yesterday witnessed a slight improvement as there was an increase in turnover due to a marginal rise in volumes moved when compared to yesterday.

The NASI reversed a consecutive three-day decline to settle higher at 140.60 points, while the NSE-25 share index showed a similar trend as it gained 12.56 points to close at 3955.56 points.

NSE 20 share index added 11.56 points to end the day at 3640.61 points. Market capitalization heaved up slightly to KES 1994.81 billion from KES 1976.55 billion previously while the equity turnover expanded by 4.59% to KES 0.76 billion from KES 0.73 billion on account of a surge in volumes traded.

A rebound in the hospitality segment has handed Kenya its best first quarter economic performance in five years, data published by the Kenya National Bureau of Statistics (KNBS) shows.

The economy expanded by 5.9 percent in the first quarter of the year compared to 5 percent the same period last year. That growth level is only second to that recorded in the first quarter of 2011 when the country recorded a high growth of 7.6 per cent.

Kenya recorded a first quarter growth of 4.7 percent in 2012, 5.8 percent in 2013 and finally dropped to 4.7 percent in the first three months of 2014.The KNBS data shows all sectors of the economy posted positive growths during the first quarter of 2016.

On the other hand, the shilling gained slightly against the dollar but lost against the Sterling and the Euro. The USD was down 0.11 percent, while the Sterling Pound and the Euro gained by 1.11 percent and 0.40 percent respectively, as the Brexit anxieties cooled off in the market. We opine that the shilling will hold steady and trade around similar levels, reinforced by the Central Bank’s interventions in the money markets, in case of any instability.