Kenyan agriculture drives economy to new heights (01/08/07)

 

Boosted by positive growth in agriculture, manufacturing, hotels and restaurants, transport and communication and financial sectors; the Kenyan economy has registered a 6.3 per cent growth for the first quarter ended March 31.

 
 
This is compared to a 4.1 per cent increase in Gross Domestic Product (GDP) in a corresponding period last year.

The unprecedented quarterly economic survey, released yesterday, puts Kenya at par with South Africa as the only sub-Sahara African countries that have adopted the internationally recommended Quarterly National Accounts (QNA) system of economic performance survey.

The figures generally show an economy firmly on the growth trajectory except for the coffee sub-sector, which recorded a negative production growth of 5.9 per cent from 17.6 metric tonnes (MT) in the first quarter last year to 16.6 MT this year.

Presenting the economic survey, Planning and National Development minister, Mr Henry Obwocha, said the move to QNA is part of the country's migration process to the International Monetary Fund's (IMF) recommended Special Data Dissemination Standards (SDDS).

"Kenya is currently subscribed to IMF's General Data Dissemination Standards (GDDS) and hopes to graduate to the more rigorous SDDS of which QNA is one of the prescribed data requirements," said Obwocha.

The agriculture sector recovered from the drought experienced in the first quarter of last year to record an overall growth of 12 per cent up from 0.3 per cent in a similar period last year.

Tea production went up by 119.7 per cent to 108.7 MT in the period, horticulture exports rose by 0.3 per cent to 44.5 MT while milk production improved from 75 million litres to 108m litres.

The manufacturing sector grew by 7.4 per cent compared to 7.1 per cent in the first quarter of last year.

Source: The Standard

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