Agric pushes Kenya’s growth

Nairobi – Kenya’s economy last year grew by 4.6 per cent, a modest improvement from 4.4 per cent recorded in 2011, buoyed by strong performance in the agriculture, retail and transport sectors.According to the Kenya National Bureau of Statistics 2013 Economic Survey, agriculture, which grew by 3.8 per cent, contributed 17.6 per cent of the overall Gross Domestic Product (GDP).The retail sector accounted for 15.2 per cent of the GDP while the transport and communication sector contributed 10.8 per cent of the GDP.Economic growth was also aided by easing inflation as favourable weather conditions led to better harvests and low food prices in the country. Average annual inflation last year stood at 9.4 per cent from the 14 per cent recorded in 2011.“Overall, economic activity in 2012 showed improvement despite a myriad of challenges that include a turbulent global economy, delayed long rains and a weakened Kenya shilling in the beginning of the year,” the survey saysGrowth in the financial sector slowed to 6.5 per cent compared to 7.8 per cent in 2011 on account of reduced growth in credit following the tightening of the monetary policy by Central Bank in 2011.Although Kenya’s economic performance exceeded projections made by the World Bank, it will pose a serious challenge to the Jubilee government’s electioneering pledge to grow the economy by double digits.

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Agric pushes Kenya’s growth