Economic growth in the third quarter of the year decelerated largely following a slowdown in agriculture, forestry and fishing supply sectors.

A report from the Kenya National Bureau of Statistics (KNBS) shows growth in these three areas slipped 1.6 percentage points from 5.5 per cent in the corresponding quarter of 2015.

The slowdown was triggered by growth constraints in some activities, as well as significant declines in the level of output.

In agriculture, for instance, growth “was dampened by poor performance in the production of tea and coffee that declined by 0.3 and 4.0 per cent, respectively, in the period under review,” the statistics agency said.

External demand

The slow growth was also due to reduced external demand as reflected by a decline in the volume of fruit exports and cane deliveries.

Overall, economic growth slowed to 5.7 per cent in the third quarter from 6 per cent posted in a similar quarter last year.

In the second quarter of this year, tourism and agriculture had pushed growth to 6.2 per cent

Manufacturing and electricity and water supply also recorded decelerated growth. Manufacturing slowed by 1.9 per cent compared to growth of 3.3 per cent over a similar period in 2015.

“Growth was supported by processing of maize meal, wheat flour and milk. On the other hand, growth was constrained by a contraction in the production of soft drinks and manufacture of beer and stout,” said KNBS.

Electricity and water supply decelerated by 7.0 per cent compared to 10 per cent growth in the third quarter of 2015.

But despite subdued growth between July and September, there was an increase in output of some food crops, cut flowers and dairy.

“The quantity of milk intake in the formal sector grew by 7.9 per cent in third quarter of 2016, albeit slower than the 27.6 per cent growth reported in the same quarter of 2015,” said KNBS.