Kenya’s Q1 Economy Drops Slightly to 5.3 Percent

Due to a downturn in economic activity, Kenya’s economy dropped by 0.9 percent in Q1 compared to the same time in 2016.

According to data from the Kenya National Bureau of Statistics (KNBS), economic growth fell to 5.3 percent in the first four months of April from 6.2 percent in the same period of 2022.

The drop occurred as the country struggled with high inflation brought on by rising fuel costs and declining purchasing power.

“Kenya’s economy expanded by 5.3 percent in the first quarter of 2023, compared to a 6.2 percent growth in the corresponding quarter of 2022,” KNBS said in a statement.

“The growth was largely supported by a rebound in agricultural activities.”

However, the country saw a growth in export revenue, which rose by 9.4% to Sh233 billion.

“This was a faster growth compared to a 2.1 percent increase in the imports on free on board (f.0.b) basis, to Ksh 536.6 billion,” it said.

The growth in exports was enhanced, according to KNBS, by higher revenues from tea, iron and steel, titanium ores, and concentrates.

However, imports during the period decreased by 0.5 percent to Sh589.8 million.

“Decelerated growth in imports is attributed to the decline in imports of industrial machinery; and iron and steel.”