Kenya's economy expanded by 4.9 per cent in the first quarter of the year, helped by improved productivity in the construction, financial services, transport and communication sectors but analysts warned that the surge in inflation and acute shortage of food since April could hurt growth in the second and third quarters. The out-turn was marginally higher than the 4.3 per cent realised during a similar period last year.
Growth in the period under review particularly benefited from the low rate of inflation that helped construction, financial services and transport sectors to offset poor performance in the agricultural sector that remains a key determinant of Kenya's economic prospects.
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