GDP grew by 5.3 percent in the first quarter of 2023, posting a faster pace than the 3.7 percent recorded in the quarter ending December 2022.
Kenya’s economy slowed down to 5.3 percent in the first quarter of 2023 from 6.2 percent in the same period of 2022, due to a fall in activities in manufacturing, construction and transport sectors, the national bureau said Tuesday.
At the same time, the country’s gross domestic product expanded by 5.3 percent in the first quarter of the year, a faster pace than 3.7 percent in the previous period ending December 2022.
“The 5.3 percent economic growth was largely supported by a rebound in agricultural activities, which grew by 5.8 percent, owing to sufficient rainfall experienced during the period. In contrast with the first quarter of 2022, where agricultural production contracted, all sectors recorded positive growth though the magnitudes varied across activities,” the KNBS said.
Overall, the economy in the three months to March posted the fastest growth in the last four quarters, defying the high cost of living driven by a prolonged drought. The quarter to March was the first time the economy has put brakes on seven straight declines from a high of 10.3 percent in 2021 to 3.7 percent in December, pointing to glimmers of recovery from post-pandemic global supply disruptions.
The rate of growth was also higher than the quarter ended September (4.3 percent) and the second quarter of last year (5.2 percent) when the country battled twin shocks of a severe drought and global supply disruptions related to the Russian invasion of Ukraine.
The sector registered a 1.7 percent increase in a similar period in 2022 as the country experienced drought. Other sectors that recorded growth in the first quarter included accommodation and food services (21.5 percent), information and communication technology (8.7 percent), financial and insurance (5.8 percent), and wholesale and retail (5.7 percent), the KNBS said.
The transport sector, which grew 6.2 percent due to the rise in fuel inflation this quarter, however, was among those that contracted to stifle overall economic growth.
The National Treasury projected that the economy would expand by 5.5 percent in 2023, up from 4.8 percent in 2022 on strategic priorities that include agricultural transformation and inclusive growth, micro, small and medium enterprises, housing and settlement, healthcare, digital economy and environment and climate change.
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