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A continued rebound of the agriculture sector has lifted Kenya’s economic growth in the quarter that ended September to 5,9 percent from 4,3 percent in a similar period in 2022.
Data from the Kenya National Bureau of Statistics (KNBS) shows growth in the period was the fastest inside six quarters as the agriculture sector continued unwinding itself from a contraction.
The sector recovered from a 1,3 percent contraction in September last year to grow by 6,7 percent, gaining dividends from improved weather conditions in 2023.
“The improved performance was attributed to favourable weather conditions that characterised the first three quarters of 2023,” KNBS said on Friday.
Fruit exports rose by 84,3 percent in the three months to 59,648 metric tonnes, while vegetable exports were up by 35,4 percent. Meanwhile, tea production improved by 28 percent to stand at 138,771 metric tonnes.
The financial sector benefitted from the tightening of monetary policy by the Central Bank of Kenya to grow by 14,7 percent from 9,6 percent last year.
“The cost of credit issued by commercial banks went up during the third quarter with average interest rates on loans and advances increasing to 13,98 percent in September from 12,41 percent in September 2022,” KNBS added.
Growth in accommodation and food service meanwhile rebounded to 26 percent from 16,9 percent on the acceleration of visitor arrivals, which were largely tied to Kenya playing host to the Africa Climate Summit Conference.
Manufacturing grew by 2,6 percent in the period from 1,8 percent previously from improved agro-processing as the output of dairy and tea products rebounded. — The East African
Online Reporter