Kenya’s GDP Growth In Q2 2021 Reported At 10.1pc

 Kenya’s Gross Domestic Product grew 10.1 pc in Q2 2021 compared to a contraction of 4.7 percent in the same quarter of 2020 aided by high growth in education, transportation, and ICT sectors.

The three sectors recorded a growth of 67.6, 16.9, and 25.2  percent respectively, the Kenya National Bureau of Statistics (KNBS)  revealed in its Quarterly Gross Domestic Product Report.

KNBS had projected the country’s economic growth to grow over six percent in 2021 after declining by 0.3 percent in 2020.

“Economic growth decelerated in the first quarter of 2021 to 0.7 percent compared to 4.4 percent in the corresponding quarter of 2020, mainly owing to the onset of COVID-19 pandemic in the country in March 2020,” KNBS said.

The Q2 growth, KNBS said, was driven by rebounds in most economic activities mainly as a result of the easing of COVID-19 containment measures that facilitated the gradual resumption of economic activity.

President Uhuru Kenyatta during the Mashujaa Day celebration on October 20, lifted the nationwide curfew that had been in force for more than a year.

The relaxation of the measures, KNBS said, also saw an increase in the accommodation and food service activities which grew by 9.1 percent in Q2 2021 compared to a 56.8 percent contraction in Q2 2020.

“Financial and insurance activities accelerated in the second quarter of 2021 to grow by 9.9 percent compared to a growth of 4.4 percent in the same period of 2020,” the agency added.

The transportation and storage sector saw a growth of 16.9 percent mainly contributed by a 25.9 percent increase in freight movements through Standard Gauge Railway (SGR)  and high visitor arrivals which rose from 527 in the second quarter of 2020 to 113,307.

“Similarly, passenger transport through SGR increased from 6,363 passengers in Q2 2020 to 304,445 passengers in 2021 Q2. Consumption of light diesel expanded by 27.4 percent compared to a contraction of 22.4 percent in the corresponding quarter of 2020,” the report read.

The construction sector, nonetheless, reported a slower growth  of 6.5 percent compared to 8.2 per cent growth in Q2 2020.

The agriculture, forestry, and fishing activities also dropped in the first and second quarters of 2021 and were estimated to have contracted by 0.9 percent compared to a growth of 4.9 percent in the corresponding quarter of 2020.

Source: Capital FM Kenya.

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