Kenya Quarterly Gross Domestic Product First Quarter 2023

The economy expanded by 5.3 per cent in the first quarter of 2023 compared to 6.2 per cent growth in the corresponding quarter of 2022. The growth was largely supported by a rebound in agricultural activities, which grew by 5.8 per cent owing to sufficient rainfall experienced during the quarter under review. In addition, the performance was also on account of significant growths in Accommodation and Food Service (21.5%), Information and Communication Technology (8.7%); Transportation and Storage (6.2%); Financial and Insurance (5.8%) and Wholesale and Retail Trade (5.7%). In contrast with the first quarter of 2022 where agricultural production contracted, all sectors recorded positive growths, though the magnitudes varied across activities. Most macroeconomic indicators showed upward trajectory during the quarter under review. Inflation rose from an average of 5.34 per cent in the first quarter of 2022 to 9.13 per cent in the first quarter of 2023, mainly due to significant spikes in food and energy prices. The Kenyan Shilling depreciated against most of the major foreign currencies in the first quarter of 2023 compared to the corresponding quarter of 2022. On average, the Kenyan Shilling ceded ground against US Dollar, Euro, and Pound Sterling by 11.1 per cent, 6.1 per cent and 0.5 per cent, respectively during the quarter in review. The Kenyan currency, however, strengthened against Japanese Yen, South Africa Rand, Ugandan Shilling, and Tanzanian Shilling during the review period. The Central Bank Rate (CBR) was reviewed upward from 8.75 per cent in February 2023 to 9.50 per cent as at March 2023 compared to 7.00 per cent in the first quarter of 2022. Broad money supply expanded by 10.4 per cent from KSh 4,707.6 billion as at March 2022 to KSh 5,197.7 billion as at March 2023. The Nairobi Securities Exchange (NSE) share index declined from 1,847.0 points in March 2022 to 1,622.0 points in March 2023. The current account deficit narrowed by 39.0 per cent from KSh 139.3 billion in the first quarter of 2022 to KSh 84.9 billion in the quarter under review