Why Kenya’s manufacturing sector grew by 5 pc

By FRANKLINE SUNDAY

NAIROBI, KENYA: Increased production of agricultural produce particularly in the sugar and horticulture sectors buoyed Kenya’s manufacturing industry above the 2012/2013 slump caused by the 2013 General Election jitters.

According to data in the 2013/2014 economic survey released by Cabinet Secretary for Devolution and Planning Ms Anne Waiguru, output in Kenya’s manufacturing industry grew by 4.8 per cent compared to 3.2 per cent recorded in a similar period the previous year.

“The volume of output grew by 2.6 per cent during the same period and this is partly associated with the political stability that prevailed after the March 2013 general elections,” read the report in part.

The manufacturing sector created 9,000 jobs in the formal sector, a 3.4 per cent increase of the 271,000 jobs created in 2012.

The total value of manufacturing output stood at Sh1 trillion with value addition and intermediate consumption growing by 5.2 and 4.3 per cent respectively.

The production of fish however recorded a slump in the second year running with a drastic 17 per cent drop in output in 2013 while production in the dairy sector rose by 4 per cent with the improved performance attributed to favourable weather conditions during the year.

The increased demand for motor vehicles saw the assembly of motor vehicles, semi-trailers and building of bus bodies grow by 3.2 per cent compared to a similar period the previous year.

Kenya’s infrastructure and real estate growth was once again evident as demand for cement drove up growth in the sector by 7.8 per cent in 2013 compared to 4.8 per cent recorded in 2012 translating to 5,059 tonnes.