{"id":104235,"date":"2023-10-05T20:57:09","date_gmt":"2023-10-05T20:57:09","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors"},"modified":"2023-10-05T22:12:13","modified_gmt":"2023-10-05T22:12:13","slug":"kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors","title":{"rendered":"Kenya\u2019s economy grows 5.4% in Q2 despite drop in six key sectors"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>The economy grew by 5.4 per cent in the second quarter of 2023 compared to 5.2 per cent growth in the corresponding quarter of 2022, according to latest official data.<\/p>\n

This is despite only agriculture surpassing last year’s performance, as] six other key sub-sectors remaining subdued.<\/p>\n

Kenya National Bureau of Statistics\u2013Quarterly Gross Domestic Product Report, released on Thursday indicates agriculture, forestry, and fishing sector grew by 7.7 per cent, a notable improvement from the 2.4 per cent contraction reported in the same quarter of 2022.<\/p>\n

The performance was primarily on account of favourable weather, which resulted to increased agricultural production.<\/p>\n

This growth was particularly evident in tea, coffee, vegetables, fruits and milk production.<\/p>\n

However, there was declined production of cut flower and sugarcane during the period under review compared to the corresponding quarter in 2022.<\/p>\n

\u201cThe growth was primarily underpinned by rebound in the agricultural activities, that grew by 7.7 per cent during the period under review,\u201d KNBS said in its report.<\/p>\n

Other sectors that supported growth during the period under review included financial and insurance (13.5%), accommodation and food service (12.2%) and information and communication (6.4%).<\/p>\n

KNBS said during the period under review, most macroeconomic indicators exhibited an upward trend.<\/p>\n

Apart from agriculture most of the other sub-sectors including financial and insurance, accommodation and food service and information and communication declined.<\/p>\n

Manufacturing sector\u2019s growth for instance slowed to 1.5 per cent compared to 3.6 per cent growth in the second quarter of 2022.<\/p>\n

In the manufacture of food products, production of sugar and soft drinks declined by 51.6 per cent and 10.7 per cent, to stand at 978,000 metric tonnes and 121.3 million litres, respectively.<\/p>\n

However, the growth albeit slower than the corresponding quarter of 2022 was supported by dairy processing, processing of coffee and tea.<\/p>\n

The construction sector recorded a subdued growth of 2.6 per cent in the quarter under review compared to 4.5 per cent growth in the same period in 2022, with the growth mainly supported by increased cement consumption of 0.4 per cent, to stand at 2.3 million tonnes.<\/p>\n

Credit advanced to enterprises in the construction sector increased from Sh136.5 billion as at June 2022, to Sh141.7 billion as at June 2023.<\/p>\n

Activities in the transportation and storage were also relatively slower with the sector estimated to have expanded by 3.0 per cent in the review period, down from 7.2 per cent in the corresponding quarter of 2022.<\/p>\n

This is despite growth in the volumes moved by the Standard Gauge Railway freight, which increased by 11.3 per cent from 1.4 million tonnes to 1.6 million tonnes.<\/p>\n

Additionally, the number of passengers transported via the SGR grew by 7.0 per cent to stand at 652,300 in the second quarter of 2023.<\/p>\n

Growth in accommodation and food service sector decelerated to 12.2 per cent during the quarter under review, compared to 44 per cent last year, information and communication sector grew by 6.4 per cent, down from 11.2 per cent while financial and insurance activities grew by 13.5 per cent, compared to 16.1 per cent in the corresponding quarter of 2022.<\/p>\n

During the period under review, the volume of shares traded in the Nairobi Securities Exchange declined from 358 million in June 2022, to 211 million in June 2023.<\/p>\n

Consequently, the total value of shares traded declined from Sh9.6 billion to Sh4.1 billion, with the NSE 20 Share Index declining by 38 points to 1,575 points from 1,613 points recorded in June 2022.<\/p>\n

On Tuesday, CBK governor Kamau Thugge noted the country\u2019s economy remains exposed to global uncertainties, persistent inflationary pressures, increase in international oil prices, a weak global growth outlook, and geopolitical tensions mainly the Russia-Ukraine war.<\/p>\n

In response, authorities around the world have taken measure to respond to these developments, including tightening monetary policies, which have a spiralling effect across global economies.<\/p>\n

CBK\u2019s Monetary Policy Committee retained the Central Bank Rate at 10.50 per cent, keeping the cost of credit elevated, but a move seen to be necessary to tame the high inflation.<\/p>\n

\u201cThe Committee will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take further action as necessary,\u201d Thugge said.<\/p>\n

High fuel and electricity prices, reduced purchasing power affecting demand for products, and the possible negative effects of the El Nin\u0303o weather phenomenon remains a concern.<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. The economy grew by 5.4 per cent in the second quarter of 2023 compared to 5.2 per cent growth in the corresponding quarter of 2022, according to latest official data. This is despite only agriculture surpassing last year’s performance, as] six other key sub-sectors remaining subdued. Kenya National Bureau of Statistics\u2013Quarterly Gross […]<\/p>\n","protected":false},"author":84,"featured_media":104233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[6857,7003,544],"class_list":["post-104235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nKenya\u2019s economy grows 5.4% in Q2 despite drop in six key sectors - kenya<\/title>\n<meta name=\"description\" content=\"The economy grew by 5.4 per cent in the second quarter of 2023 compared to 5.2 per cent growth in the corresponding quar ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kenya\u2019s economy grows 5.4% in Q2 despite drop in six key sectors\" \/>\n<meta property=\"og:description\" content=\"The economy grew by 5.4 per cent in the second quarter of 2023 compared to 5.2 per cent growth in the corresponding quar ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-05T20:57:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-05T22:12:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/10\/sm_1696531079.923498.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"666\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Kenya\u2019s economy grows 5.4% in Q2 despite drop in six key sectors\",\"datePublished\":\"2023-10-05T20:57:09+00:00\",\"dateModified\":\"2023-10-05T22:12:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\"},\"wordCount\":703,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/10\/sm_1696531079.923498.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/kenyas-economy-grows-5-4-in-q2-despite-drop-in-six-key-sectors\",\"name\":\"Kenya\u2019s economy grows 5.4% in Q2 despite drop in six key sectors - 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