Kenya's economic growth slows on declined activities

NAIROBI, July 4 (Xinhua)

Kenya's economy slowed down to 5.3 percent in the first quarter of 2023 from 6.2 percent in the same period of 2022, hurt by a fall in activities in manufacturing, construction and transport sectors, the national bureau said Tuesday.

The Kenya National Bureau of Statistics (KNBS), however, said in its report released in the Kenyan capital of Nairobi that agriculture rebounded, aiding to mitigate the slowdown.

"The 5.3 percent economic growth was largely supported by a rebound in agricultural activities, which grew by 5.8 percent, owing to sufficient rainfall experienced during the period," the agency said.

The sector registered a 1.7 percent increase in a similar period in 2022 as the country experienced drought. Other sectors that recorded growth in the first quarter included accommodation and food services (21.5 percent), information and communication technology (8.7 percent), financial and insurance (5.8 percent), and wholesale and retail (5.7 percent), the KNBS said.

"In contrast with the first quarter of 2022, where agricultural production contracted, all sectors recorded positive growth though the magnitudes varied across activities," the KNBS said.

The transport sector, which grew 6.2 percent due to the rise in fuel inflation this quarter, however, was among those that contracted to stifle overall economic growth.

The National Treasury projected that the economy would expand by 5.5 percent in 2023, up from 4.8 percent in 2022.

"The growth outlook over the medium term will be reinforced by the implementation of the strategic priorities under the government's Bottom-Up Economic Transformation Agenda (BETA)," Njuguna Ndung'u, the cabinet secretary of National Treasury and Economic Planning, said recently while unveiling the 2023/2024 budget.

The strategic priorities include agricultural transformation and inclusive growth, micro, small and medium enterprises, housing and settlement, healthcare, digital economy and environment and climate change.