This archive report was first published on 6 July 2020.
Published on July 6, 2020, Kenya's economic growth slowed down to 4.9% in the first quarter of this year, a decline from the 5.5% growth posted in the first quarter of 2019.
The Central Bank of Kenya (CBK) warned that the adverse effects of COVID-19 on the economy will be more pronounced in Q2, 2020.
The agricultural sector, which grew at 4.9%, showed an improvement from the 4.7% growth rate in the first quarter of 2019.
However, the industrial sector, which includes mining and quarrying, manufacturing, construction, and electricity and water supply, slowed down to 4.4% in Q1, 2020, from 4.7% in a similar period in 2019.
The services sector, which includes wholesale and retail, accommodation and restaurant, transport and storage, ICT, finance and insurance, public administration, professional services, real estate, education, and health, saw its growth rate decline to 5.5% from 6.4% recorded in the first quarter of 2020.
The Accommodation and Restaurant segment suffered the biggest hit, recording a negative growth rate of 9.3% from 11% growth in Q1, 2019.
Overall inflation declined to 4.6 percent in June from a revised 5.3 percent in May, mainly driven by a general decline in food prices.
The Kenya Shilling remained stable against major international and regional currencies during the week ending July 2, exchanging at KSh 106.54 against the US dollar on July 2 compared to KSh 106.40 on June 25.
Foreign Exchange Reserves stood at US$ 9,717 Million as at July 2, meeting the CBK's statutory requirement of at least 4 months of import cover and the EAC region's convergence criteria of 4.5 months of import cover.
The Current Account deficit narrowed to 5.2 percent of GDP in the 12 months to May 2020 compared to 5.6 percent of GDP in the 12 months to April.
The Treasury bills auction of July 2 received bids totalling KSh 76.2 Billion against an advertised amount of KSh 24.0 Billion, representing a performance of 317.4%.
Turnover of bonds traded in the domestic secondary market declined by 30.9 percent during the week ending July 2, 2020.
Yields on Kenya's Eurobonds remained stable, declining by an average of 0.34 basis points.
International oil prices increased during the week on account of lower oil production by OPEC countries, with the Murban oil price increasing to US$ 42.91 per barrel on July 2 from US$ 40.83 per barrel on June 25, 2020.
