Kenya Quarterly Gross Domestic Product First Quarter 2016

Abstract

The economy is estimated to have maintained the growth momentum that started during the second quarter of 2015. All sectors of the economy posted positive growths resulting to an expansion of 5.9 per cent in real Gross Domestic Product (GDP) during the first quarter of 2016 compared to 5.0 per cent in a similar quarter of 2015. The most notable improvement was a rebound in activities of accommodation and food services which expanded by 12.1 per cent in the period under review compared to a contraction of 11.4 per cent during the same quarter in 2015. Agriculture, forestry and fishing; transport and storage; and mining and quarrying also recorded improved growths during the review quarter as shown in Table 3. Construction and, finance and insurance registered slowed but robust growths in the review quarter. However, growth of the manufacturing sector remained depressed over the same period.

Inflation rose to average at 7.0 per cent during the quarter under review, compared to 5.8 per cent in the first quarter of 2015. Weighted average commercial banks loans and advances rates also edged upwards to average at 18.4 per cent during the quarter compared to 15.6 per cent in the first quarter of 2015. The Kenya Shilling depreciated significantly against the US Dollar, Japanese Yen, the Euro and the Sterling Pound by 11.6, 15.5, 10.5 and 5.6, per cent, respectively. Regionally, the Kenya Shilling depreciated against the Tanzanian Shilling but appreciated against the Uganda and South Africa Rand by 20.6 and 16.4 per cent, respectively.