Kenya’s economy grew at a faster pace in the second quarter of this year compared to 2015, driven by a strong growth in agriculture and the recovering tourism sector.
The second quarter Gross Domestic Product and Balance of Payments report shows the economy expanded by 6.2 % compared to 5.9 % in a corresponding period last year.
Agriculture posted a 5.5 % growth compared to a revised growth of four % in 2015, the report published on Friday by the Kenya National Bureau of Statistics shows.
“The period under review was characterized by adequate and well distributed rainfall that greatly enhanced agricultural production. Notably, the quantity of coffee and tea grew by 16.3 and 49.6 % , respectively, “KNBS said.
The value of exports of horticultural crops grew to Sh26.0 billion from Sh17.7 billion, a 47.1 per cent growth, with Kenya commanding a 38 % of all cut flower imports into the EU.
“This growth was on account of considerable increases in the value of exported cut flowers and vegetables especially in the month of June,” the report states.
During the period under review, the accommodation and food service, which falls under tourism , grew by 15.3 % compared to a decline of 5 % in the same quarter of 2015.
Tourist arrivals through the two main airports increased to 186,685 from 170,374 in the same period last year, a 9.6 % growth.
The statistician also pegged the country’s growth on forestry,fishing, transportation,storage, real estate, wholesale and retail trade.
The manufacturing sector however failed to leverage on the cheaper oil prices to accelerate its growth. It experienced the slowest growth at 3.2% during the review quarter.
The transport sub-sector rode on the lower oil prices especially diesel, to expand at a faster pace of 8.8 % compared to a 6.8 % last year.
The country’s current account deficit contracted by 6.1% to Sh141.9 billion from Sh 151.2 billion in the same period last year, signaling an improved balance of trade.