Kenya’s economic growth has slowed to 5.7 per cent in the third quarter of 2016 compared to the six per cent posted in a similar quarter last year.
According to the just released Kenya National Bureau of Statistics (KNBS) report, most sectors recorded slowed growth. This is unlike in second quarter where tourism and agriculture pushed the growth to 6.2 per cent.
“Generally, the economic growth was well spread although most of the sectors of the economy recorded slowed growths,” said KNBS.
In the three months to September, the data shows, the growth of the agriculture, forestry and fishing sector slowed to 3.9 per cent compared to a growth of 5.5 during the same quarter in 2015.
Activities of the manufacturing and the construction industries recorded notable slowdown in growths. While growth in manufacturing dropped to 1.9 per cent from 3.3 per cent in 2015, construction grew by 9.3 per cent unlike in 2015 when it did 15.6 per cent. However, sectors such as accommodation and restaurants; transport and storage, health professional, administrative and support recorded improved.
According to the report, generally, economic growth in 2016 has been stable because macroeconomic indicators have been within the control of government.
After capping lending rates in August this year by Parliament, the report says that there has been a decline in interest. “The amendment of the Banking Act in August 2016 to cap the lending rates resulted to a substantial decline in the interest rates during the month of September to 13.84 per cent, up from 16.75 per cent in the same month of 2015,” KNBS said.
Within the same period, there has been a 10.4 per cent decrease in the current account deficit, where the value of exports income is lower than imports or investments income.
