Kenya Quarterly Gross Domestic Product First Quarter 2010

Abstract

The economy is estimated to have expanded by 4.4 per cent in the first quarter of 2010 compared to a growth of 5.6 per cent during a similar quarter of 2009. This expansion was realized against an environment of improved weather that boosted agricultural output, interest rate cuts by commercial banks which resulted to increased uptake of loans by businesses and individuals, and stabilizing of local commodity prices. The key sectors of the economy; Agriculture and Forestry, Manufacturing, Wholesale and Retail trade, Transport and Communications and Financial Intermediation were the main drivers of this growth.

After a mixture of quarterly contractions and stagnation since the third quarter of 2007, Agriculture and forestry recorded a substantial growth of 4.6 per cent in the first quarter of 2010. Other sectors that recorded sizeable growths during the quarter were Financial Intermediation, Mining and Quarrying, Manufacturing, Construction, Transport and Communications, and Wholesale and Retail trade with respective growths of 11.9, 9.1, 7.8, 4.8, 4.7, and 3.7 per cent. Despite the heavy rains experienced during the quarter, Electricity and Water was the only sector that posted a negative growth mainly on account of increased production of thermal generated electricity.