Kenya’s economy grows by 4.3% in second quarter

Nairobi – Kenya’s economy expanded by 4.3 per cent in the second quarter of the year, recording slower growth compared to the same period last year when it expanded by 4.4 per cent.

Nairobi – Kenya’s economy expanded by 4.3 per cent in the second quarter of the year, recording slower growth compared to the same period last year when it expanded by 4.4 per cent.

The Kenya National Bureau of Statistics (KNBS) said growth was held back by a major contraction in the tourism sector that continues to suffer from a decline in visitors’ arrivals.

The sector recorded an 11.4 per cent contraction in the second quarter compared to a growth of 2.9 per cent a year earlier, with the low bookings linked to uncertainties over the country’s general elections held in March this year.

“The growth was mainly supported by strong expansions of activities of electricity and water, financial intermediation, agriculture and forestry and manufacturing,” KNBS said in a statement.

“On the other hand, hotels and restaurants recorded a significant contraction while wholesale and retail trade’s growth slowed albeit marginally.”

Compared to the first quarter, the economy expanded by 0.7 per cent during the second quarter as measured by seasonally adjusted Gross Domestic Product, KNBS added.

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