Accommodation and food services, information and technology, real estate, transport and storage, among other non-mainstream sectors boosted Kenya’s economic growth marginally from the 5.7 per cent growth recorded in 2015.
Agriculture which accounts for 32.6 per cent of the country’s economy suffered bad weather to post a decline form the 2015 figure of 5.5 per cent to 4 per cent.
The sector which is worth Sh2.3 trillion was depressed despite growths recorded in the production of coffee and tea, which makes some of the country’s top exports.
Traditionally smaller sectors of the economy lifted economic growth to 5.8 per cent last year despite decline in the main sectors, according to the latest annual economic survey.
Kenya National Bureau of Statistics (KNBS) data released Wednesday shows accommodation and food services, information and technology, real estate, transport and storage, among other non-mainstream sectors boosted Kenya’s economic growth marginally from the 5.7 per cent growth recorded in 2015.
The sectors whose contribution to the gross domestic product (GDP) traditionally carry lesser weight did the heavy lifting despite the drops recorded in the major sectors like agriculture and manufacturing whose growth recorded slowed down last year.
The report also shows that accommodation, which is the main component of the tourism sector, in particular recorded a major rebound from a contraction of 1.3 per cent in 2015 to an expansion of 13.3 per cent.
Devolution and Planning secretary Mwangi Kiunjuri said the government had invested in security and other measures to make the business environment conducive, reviving the sector which had taken a hit mainly from terror attacks since 2013.
“We have made massive efforts to improve the business environment through better security, infrastructure and electricity connection. All these have resulted in more attraction for investors and the increase in number of tourists visiting the country apart from the many successful conferences hosted here since 2015,” he said yesterday while releasing the Economic Survey 2017 report.
The recovery of the accommodation sector which accounts for 0.7 per cent of GDP grew earnings from tourism activities by 36.8 per cent to Sh99.7 billion last year.
International arrivals rose from 1.18 million to 1.33 million in the same period as heads of States and other dignitaries were hosted in Nairobi for some high-profile conferences last year. Reversal of travel advisories and visa fee waivers also boosted the sector performance.
The Tokyo International Conference of African Development for African presidents, the United Nations Conference on Trade and Development, the Africa Academy of Management Biennial Conference and the Environmental Cement Africa conference are among the key events Kenya hosted in 2016.
The successful meetings led Nairobi to be voted Africa’s leading meetings and conference destination at the 2016 World Travel Awards.
However, agriculture which accounts for 32.6 per cent of the country’s economy suffered bad weather to post a decline form the 2015 figure of 5.5 per cent to 4 per cent.
The sector which is worth Sh2.3 trillion was depressed despite growths recorded in the production of coffee and tea, which makes some of the country’s top exports.
Maize production declined from 42.5 million bags in 2015 to 37.1 million bags in 2016, explaining the current biting shortage that has seen the price of maize flour shoot to a high of Sh150 for 2kg packet.
The decline in agriculture caused a slight drop in manufacturing sector to 3.5 per cent compared to 3.6 per cent in 2015.
Construction declined to 9.2 per cent from the 13.2 per cent recorded in 2015 due to a slowdown of activity at the standard gauge railway construction, which is nearing completion.
The marginal growth in the overall economy was also boosted by growth in other sectors including information technology, transport and storage as well as real estate.
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