Kenya’s GDP grew by 10.1% in Q2 of 2021
Kenya’s Gross Domestic Product (GDP) grew by 10.1 percent in the second quarter of 2021 compared to a contraction of 4.7 percent in the same quarter of 2020.
According to the Kenya National Bureau of Statistics (KNBS), the GDP growth was mainly supported by rebounds in key economic indicators that had contracted in 2020.
“The growth recorded was mainly as a result of easing of COVID-19 containment measures that facilitated gradual resumption of economic activity.”
Some of the sectors that supported overall growth in the second quarter included Manufacturing (9.6%), Education (67.6%), Transportation and Storage (16.9%).
Information and Communication grew by 25.2 percent while other services activities went up 20.2 percent.
Agricultural sector contracted by 0.9 percent in the second quarter compared to a 4.9 percent growth same period last year.
There was a slowdown in performance of agriculture, forestry and fishing activities in the first and second quarters of 2021.
The sector is estimated to have contracted by 0.9 per cent in the second quarter of 2021 compared to a growth of 4.9 per cent in the corresponding quarter of 2020.
Growth in manufacturing through the second quarter was anchored on the production of non-food items such as locally assembled motor vehicles, and paper products at 12.2 percent.
Electricity supply grew by 5.2 percent in the second quarter from 4.7 percent on increased power generation while the transport and storage sector grew by 16.9 percent in the same period to reverse a 16.9 percent contraction last year.
Accommodation and food service activities grew by 9.1 per cent turning around from a 56.8 percent contraction following the normalization of operations at bars, hotels, restaurants and entertainment joints with the easing of COVID-19 containment measures.
Meanwhile, financial and insurance activities grew by 9.9 per cent in the second quarter from 4.4 per cent last year.
The World Bank Group on the other sees the Kenyan economy expanding by a higher five percent this year.
The new projection is contained in the multi-lateral lender’s October projections for economies in Sub-Saharan Africa (SSA) which were published on Wednesday.
The greater projection for growth in Kenya has been anchored on the observed broad-based rebound to economic activity.
“This positive outlook reflects improvements in construction, education, ICT and real estate sectors. Inflation remains contained near the Central Bank objective, and monetary policy continues to support growth,” the report notes.
Last year, the World Bank projected a growth of 1.5 percent in the baseline scenario due to the negative impact of the COVID-19 pandemic on Kenya’s GDP.
Nevertheless, the World Bank predicts slower growth into the medium term with Kenya’s GDP estimated to grow by an average of 4.8 percent in 2022 and 2023 in contrast to a higher outlook of five percent previously.