Kenya’s Economic Growth Slows To 5.2 Percent In June

Data from the Kenya National Bureau of Statistics (KNBS) shows that Kenya’s economy expanded at a slower pace of 5.2 percent in the second quarter of the year compared to the growth rate of 11 percent recorded in a similar period last year.

The 3-month growth has been supported by double-digit growth in sectors including accommodation & restaurant which grew by 22 percent, mining and quarrying by 22.6 percent, and finance and insurance by 11.6 percent.

The number of international arrivals significantly increased during the period under review, coming as a boost to the accommodation and food services which were the most affected by the impacts of the covid 19 pandemic.

“The number of visitors’ arrival through Jomo Kenyatta International Airport (JKIA) and Moi International Airport (MIA) more than doubled from 113,307 visitors in the second quarter of 2021 to 279,981 visitors during the quarter under review,” KNBS stated in its second quarter economy statistical release.

The agricultural sector which is a major boost to the country’s GDP contracted by 2.1 percent owing to the unfavorable weather conditions witnessed in the country, with the effects of the poor weather stretching out to the manufacturing sector bringing the growth rate to 3.6 percent from 11.3 percent last year.

“The performance of the sector was evident in the significant decline in exports of vegetable and cut flower, and production of tea, coffee, and milk,” KNBS noted.

The electricity and Water Supply sector expanded by 5.0 percent during the period compared to the 7.2 percent growth registered in a similar period last year. The growth was fueled by increased generation of electricity from renewable sources such as geothermal and wind.

During the period, inflation rose to 7.16 percent from an average of 5.98 percent in the second quarter of 2021 owing to the increase in the prices of food and energy, which triggered low purchasing power as consumers shift to the basics.

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