Economic data release to delay, says State agency

Kenya: Kenya National Bureau of Statistics (KNBS) has announced a delay in releasing the second quarter figures on the Gross Domestic Product (GDP).

The statistics office said this is due to the rebasing exercise which necessitated harmonisation of both the quarterly and annual series. "KNBS will release the second quarter GDP figures on October 13," acting Director General Zachary Mwangi said in a statement.

Under the old calculations, Kenya's GDP is estimated to have expanded by 4.1 per cent in the first quarter of 2014 compared to 5.2 per cent during the same quarter of 2013. This is based on the 2001 as the base year, which has now shifted to 2009.

KNBS has already revised the country's GDP for 2013 from Sh3.8 trillion to Sh4.76 trillion. As a result, growth rate in 2013 was revised from 4.7 to 5.7 per cent leading to a 25 per cent increase in the value of Kenyan economy. The rebasing exercise included a change in base year from 2001 to 2009 and a small adjustment in the structure of the economy.

Agriculture, manufacturing and real estate were responsible for the greater share of the increase in output, but their proportions remained alike. Information and communication technology was added as a separate sector.

In addition, structural changes in relative prices of various products and in consumption patterns were included. On the positive side, as GDP per capita surpasses $1,200, this means Kenya is now considered a lower middle income nation.

The rise in GDP will also result in the fall of the government debt to GDP ratio and decrease borrowing cost in the international markets. Yet, a larger economy does not necessary mean that the average Kenyan is wealthier. And with external aid likely to reduce, poverty and inequality may worsen.