Kenya’s economy expands 5.4pc in Q2 on rebounding agriculture

According to the Kenya National Bureau of Statistics, the economy grew by 5.4 per cent in the second quarter of 2023. FILE PHOTO | POOL

The Kenyan economy expanded by 5.4 percent between April and June this year, growing at a faster pace than the 5.2 percent growth rate posted at the same time last year.

The growth in the second quarter was supported by a turnaround in the output of the agriculture sector which expanded by 7.7 percent, the fastest pace since 2020, from a contraction of 2.4 percent in 2022.

During the period, all economic sectors grew albeit at a slower pace, including manufacturing, electricity and water supply, construction, accommodation, transport and storage, finance and insurance.

The rebound in the agriculture sector has been attributed to improving weather conditions at the end of a two-year cycle of turbulence which was characterized by drought.

“The performance was primarily on account of favourable weather conditions, which resulted in increased agricultural production with the growth being particularly evident in the production of tea, coffee, vegetables, fruits and milk,” the Kenya National Bureau of Statistics noted on Thursday.

Tea production for instance rose by 15.2 percent to 155,500 metric tonnes while coffee exports increased by 13.7 percent to 18,900 metric tonnes in the second quarter of 2023.

Equally, volumes of exports of fruit and vegetables were up as was milk intake by processors.

Nevertheless, there were declines in the production of cut flowers and sugarcane during the period under review with sugarcane deliveries slumping to 1.25 million metric tonnes from 2.156 million metric tonnes in the quarter ended June 2022.

While growth for the remainder of sectors normalized/stagnated, the sectors of wholesale and retail trade marked increased output alongside real estate, education and health, joining agriculture in underpinning overall growth.

GDP growth in the second quarter was the quickest since 2021 when the economy marked a significant rebound from the vagaries of the Covid-19 crisis.

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