Kenya’s economic growth has hit its slowest pace within eight years after recording 4.9 percent for the year’s first quarter. The figures show a significant drop from the growth rate of 5.5 percent achieved from last year.
Data from the Kenya National Bureau of Statistics(KNBS) states the slow growth pace in the first quarter hit its lowest since 2012 results. This is despite the uncertainty, which has seen exports rise and a 9.3 percent contraction in demand for food and accommodation services.
“The economy was affected by the resultant uncertainty that was already slowing economic activity in some of the country’s major trading partners,” reveals KNBS.
Statistics from the agency further reveals agriculture as the principal sector responsible for the growth in exports. As per the data, agricultural activities saw a 4.9 percent growth despite the slowdown of economic activity hurting sectors such as flower exports. The increase was evident in tea production and sugarcane volume, which rose by half and 10.2 percent, respectively.
Further, the construction and manufacturing sectors remain hardest hit with both slowing to 5.3 percent and 2.9 percent, respectively. The first three months would see 287,481 Kenyans lose their sjobs, hitting payroll and corporate taxes according to KNBS.