Kenya's 2022 second-quarter GDP growth slows compared to 2021

A view of Nairobi city [Wilberforce Okwiri,Stanadard]

Kenya's Gross Domestic Product (GDP) has grown by 5.2 per cent in the second quarter of 2022, according to a report by the Kenya National Bureau of Statistics (KNBS).

This is a drop compared to the growth of 11 per cent that was reported the same period last year.

KNBS attributes the decline in GDP to inflation and the weakening of the shilling.

“Inflation rose from an average of 5.98 per cent in the second quarter of 2021 to 7.16 per cent in the same quarter of 2022, mainly due to increase in prices of food and energy.

“The Kenyan Shilling depreciated by 7.9 per cent against the US Dollar from an average of Sh107.73 in the second quarter of 2021 to Sh116.33 per cent in the corresponding quarter of 2022,” said KNBS.

The bureau, however, acknowledged that the Kenyan currency had gained against other major currencies such as the Pound Sterling, Euro, Japanese Yen and South African Rand by 2.6 per cent, 4.4 per cent, 8.7 per cent and 1.6 per cent, respectively during the review period.

On the other hand, KNBS attributed the 5.2 per cent growth to the expansion of activities such as Financial and Insurance, Transportation and Storage, Wholesale and Retail Trade as well as the Real Estate sector.

Additionally, the report stated that during the quarter, the Mining and Quarrying, Accommodation and Food Service, Professional, Administration and Support services recorded the highest growths and also contributed significantly to the economic growth.

“However, the growth of the economy was somehow dampened by a contraction of 2.1 per cent in the Agriculture, Forestry and Fishing activities mainly due to unfavourable weather conditions,” said KNBS.