Kenya’s economy displayed robust growth, expanding by 5.4 percent in the second quarter of the year, marking an improvement from the 5.2 percent recorded during the same period last year, according to the Kenya National Bureau of Statistics (KNBS).

The driving force behind this impressive growth was the remarkable resurgence of the agriculture sector, which saw a 7.7 percent increase, its fastest growth rate since 2020, after a challenging period when it had contracted to 2.4 percent in 2022.

KNBS’s data reveals that every sector of the economy experienced growth during this period, contributing positively to the overall economic expansion.

Kenya’s favorable weather conditions played a pivotal role in this revival, supporting the production of the country’s key cash crops.

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Treasury CS Njuguna Ndung’u. Image: courtesy. 

Prior to this, the nation had endured its sixth consecutive failed rainy season, which had significantly hindered agricultural output.

The recovery in the agriculture sector can be attributed to improved weather patterns, marking the end of a two-year cycle of turbulence characterised by drought.

“The growth was primarily underpinned by a rebound in agricultural activities, which grew by 7.7 percent during the period under review,” KNBS said on Thursday,

Notable growth was observed in the production of tea, coffee, vegetables, fruits, and milk. Green leaf production surged by 15.2 percent to 155,500 tonnes, while coffee exports increased by 13.7 percent to 18,900 tonnes in the second quarter of this year.

However, the flower sector witnessed a decline in production during this period, as did the sugar sector, which has been grappling with a shortage of raw materials, leading to the regulator’s decision to halt milling in order to curb the harvesting of immature cane.

On the flip side, the manufacturing sector experienced a negative growth rate of 1.5 percent, a stark contrast to the 3.6 percent growth recorded during the corresponding period last year. This decline can be attributed to a significant slowdown in sugar production, which decreased by 52 percent during the review period.

In the same period, the financial and insurance sector recorded a growth of 13.5 percent, while the service sector, notably accommodation and food services, saw a 12.2 percent increase.

The information and communication sector also contributed positively with a 6.4 percent growth.

It’s worth noting that the Central Bank of Kenya recently highlighted the country’s economic vulnerability to global uncertainties, persistent inflationary pressures, rising international oil prices, and geopolitical tensions stemming from the Russia-Ukraine conflict.

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