Kenya Quarterly Gross Domestic Product First Quarter 2012

Abstract

The first quarter of 2013 experienced improved weather conditions for some key crops compared to the same quarter of 2012. The country also conducted the first general elections under the new constitution in March 2013 which to a certain extent also shaped the pace of the economic growth. The improved weather conditions resulted to better performance in the agricultural sector. On the other hand, a wait-and-see attitude adopted by producers and consumers in relation to the elections led to suppressed activities of manufacturing, hotels and restaurants and financial intermediation.

Inflation eased considerably to an average of 4.08 per cent during the quarter under review from 16.87 per cent in the corresponding quarter of 2012. Prices of most food crops remained relatively stable while Murban ADNOC prices (US$/barrel) decreased by 6.7 per cent during the quarter compared to the same quarter of 2012. In the money market, the Kenya Shilling weakened against the US dollar, Euro, Sterling pound and the Tanzania Shilling but strengthened against the Yen, South African Rand and the Ugandan Shilling during the quarter compared to a similar period in 2012. The quarter also witnessed substantial decline in the interest rates compared to the same quarter of 2012 while activities of the capital market remained robust. The value of total exports increased by 0.9 per cent while the import bill rose by 8.4 per cent resulting to widening of the current account deficit.