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Kenya's Economy Slows to 5.6% Amidst Delays in Long Rains

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 1 October 2019.

Kenya's economy grew 5.6% between April and June this year, a slowdown from the 6.4% expansion in the same period last year.

The Kenya National Bureau of Statistics (KNBS) attributed the lower growth rate to a slowdown in agriculture, manufacturing, and transportation.

According to KNBS, the macroeconomic environment remained conducive for growth in April and June this year, with several sectors posting impressive performances. However, the overall growth was curtailed by a slowdown in agriculture, manufacturing, and transportation.

Agriculture grew by 4.1% compared to 6.5% in the second quarter of 2018, with delayed long rains contributing to the decline in agricultural production.

The manufacturing sector slowed by 50 basis points to a growth rate of 4.2%, with the manufacture of tobacco products and processing and preservation of fish being major contributors to the decline.

On the other hand, the construction sector accelerated from 5.4% to 7.2%, driven by ongoing public infrastructure projects, including the construction of roads and phase two of the Standard Gauge Railway.

Electricity and water contracted to a growth rate of 5.6% compared to an expansion of 8.4% in a similar quarter in 2018, with insufficient long rains resulting in a contraction of 35.9% in the generation of hydro-electric power.

However, the generation of electricity from thermal sources increased by 44%, while generation from wind increased 64 times, cushioning the sector from a more severe slowdown.

Other sectors, including accommodation and food services, information and communication, wholesale and retail trade, and construction, maintained high growths and supported the overall economic growth.

Information and communication posted the fastest growth rate of 11.6%, followed by accommodation and food services with a growth rate of 10.6%.

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