Kenya Quarterly Gross Domestic Product First Quarter 2011

Kenya’s Gross Domestic Product (GDP) expanded by 4.9 per cent in the first quarter of 2011 compared to 4.3 per cent during the same quarter of 2010. This growth can be attributed to accelerated expansion in activities of the transport and communication, financial intermediation and construction industries during the quarter under review. The expansion was also supported by growths in manufacturing, wholesale and retail trade, hotels and restaurants, and electricity and water sectors. The most remarkable improvements were experienced in the hotels and restaurants and electricity and water sectors which made turnarounds after contracting by 2.7 and 2.5 per cent in first quarter of 2010, to growths of 8.3 and 3.5 per cent during the same quarter of 2011 respectively. The improved economic performance was despite the period being characterized by poor rains and high energy prices which to a certain extent restrained economic growth. Agricultural output, particularly coffee and tea had their production substantially depressed as a result of the poor rains. The quarter also experienced shortage and high prices of fertilizer and seeds for key food crops.