2 July 2014

Kenya: Agriculture, Tourism Drag Down GDP Growth in Quarter

Poor performance in agriculture and tourism sectors in the first three months of the year has dragged down the country's Gross Domestic Product expansion, first quarter data showed.

The Kenya National Bureau of Statistics said GDP expanded at a much slower pace of 4.1 per cent in the first quarter compared to 5.2 per cent in a similar period last year.

KNBS said agriculture and forestry, fishing and restaurants sectors posted contracted growth over the period owing to erratic weather, reduced demand in export markets and insecurity concerns.

"The deceleration in growth of the hotel industry was largely due to insecurity concerns coupled with negative travel advisories by some key tourist source countries," KNBS said on Monday.

The transport sector, whose performance is directly linked to tourism, recorded an increase in visitor arrivals via the Jomo Kenyatta and Moi International Airports to 91,602 in March from 68,604 in February.

The increase in arrivals had a direct link to the three per cent growth in hotels and restaurants, which had declined by 12.8 per cent during the first quarter of 2013.

Erratic weather patterns resulted in depressed agricultural output particularly for cereals, while cut flowers and vegetable exports declined in the period.

Agriculture and forestry expanded by 2.7 per cent between January and March, significantly slower compared to a 6.8 per cent growth in a similar period last year.

"The slowed growth was largely attributed to erratic weather and suppressed external demand during the review period," KNBS said.

Three major cash crops, tea, coffee and sugar recorded mixed trade performance over the period.


Pope Francis Received by President Kenyatta

Pope Francis landed at the JKIA at 4.32 pm on Wednesday and was received by the President, several senior state … see more »

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.