National Treasury Cabinet Secretary Ukur Yatani.

Kenya’s economy posted an impressive 10.1 per cent growth in the three months to June as various sectors reported increased activity following the easing of tough Covid-19 containment curbs that were in place until early this year.

The country’s turnaround has been anchored on the steady recovery of key economic pillars save for agriculture that shed 0.9 per cent in the second quarter.

Agriculture sector’s performance was cushioned from a steeper slump by a notable increase in milk production, horticultural exports and production of sugarcane.

The volume of milk intake by processors between April and June increased by 37.9 per cent to stand at 208.5 million litres, KNBS said.

“The growth recorded was mainly as a result of easing Covid-19 containment measures that facilitated gradual resumption of economic activities,” said the Treasury Cabinet Secretary Ukur Yatani.

Latest economic growth data from the Kenya National Bureau of Statistics shows that the economy is on a rebound after shaking off the contraction suffered last year owing to the adverse effects of the pandemic.

Read also: Why picking out good from bad borrowers will be tough job for banks

The data showed that recovery in the April – June period was largely supported by the resumption of learning activities which posted a 67.6 per cent jump year-on-year followed closely by ICT industry at 25.2 per cent.

Other segments of the economy that reported significant growth were the services which closed at 20.2 percent and the manufacturing industry at 9.6 per cent.

The manufacturing industry saw the assembly of motor vehicle grow by 10 per cent, even as the manufacture of galvanized iron sheets went up 34.5 per cent and the production of paper and paper products increased by 13.5 per cent.

In the second quarter, however, loans advanced to enterprises in the manufacturing segment declined by 0.9 per cent to stand at Kes1,265.8 billion.

The construction sector recorded a growth of 6.5 per cent in the three months to June compared to 8.2 per cent jump during a similar period in 2020.

Cement consumption went up by 29.3 per cent to 2,078.8 thousand metric tonnes in the second quarter of 2021, KNBS said, pointing to sustenance of performance in economic activities in the industry.

In the transportation and storage business, there was accelerated growth was as a result of lifting of restrictions on domestic and international travel which was in place in the second quarter of 2020.

The haulage of cargo through the Standard Gauge Railway (SGR) increased by 25.9 per cent to stand at 1,326 thousand metric tonnes between April and June.

The accommodation and food service industry, which was woefully battered last year by the pandemic, rebounded expanding by 9.1 per cent in the second quarter of 2021 compared to 56.8 per cent contraction in the second quarter of 2020.

Further, financial and insurance activities accelerated in the second quarter of this year to grow by 9.9 per cent compared to an upswing of 4.4 per cent in the same period last year.

The National Treasury as well as the Central Bank of Kenya have both projected roughly a six per cent growth for Kenya’s economy this year attributable to increasing business activity across the industry.

[email protected]

Leave a comment