Kenya’s GDP Slows To 5.1 Percent In Quarter 3 Of 2019

Kenya’s economy grew by 5.1 percent in the third quarter of 2019, between the month of July and September according to stats released by the Kenya National Bureau of Statistics (KNBS).

According to the stats by KNBS, Kenya’s economy has slowed from 6.0 percent recorded at a similar period in 2018 due to a slowdown in most sectors, especially the agricultural sector.

“The decelaration in growth was mainly on account of suppressed growth in most of the sectors.”

Growth in agriculture, forestry, and fishery dropped 3.2 percent, from 4.2 percent during the second quarter and 6.9 percent in the same period in 2018.

“Macroeconomic indicators showed mixed performances, but largely pointed to reduced economic activity compared to the third quarter of 2018,” said KNBS.

The inflation rate for the month of December 2019 stood at 5.82 percent on account of increased transport costs, food prices, and other basic commodities despite the reduction in fuel prices.

Although many analysts have predicted that the economy of Kenya will be among the most expanding in 2020, things on the ground seem to be painting a totally different picture.

READ: Here Are 10 Pointers To Successfully Guide You Through 2020

For years, Kenyan leaders have made Kenyans believe that growth in GDP is growing in the whole economy but as CBK Governor Patrick Njoroge says, “You can’t eat GDP. At the end of the day, people want jobs, clothes and good on their table.”

The unemployment rate in Kenya continues to expand. The rate now stands at 43.5 percent with institutions of higher learning continuing to channel graduates into the job market.

There are concerns that the Kenyan economy is on the way of hitting the stagflation stage where unemployment and inflation will both be high, coming down hard on the general economy.

As 2020 kicks off, the only thing Kenyans can do is to hope and wait. The future looks gloomy and there is no hope on the horizon.

READ: Beware of These Black Spots While Driving Across Kenya