The Kenya National Bureau of Statistics (KNBS) 2022 Economic Survey shows Kenya’s GDP rose by 7.5 per cent in 2021, owing to the recovery of important sectors following the Covid-19 pandemic and a stable macroeconomic climate.
The growth is however in contrast to the 0.3 per cent decline seen in 2020, when the economy was hit hard by the pandemic.
KNBS director general Mcdonald Obudho noted during the release of the survey, in Nairobi, today all economic activities registered positive growth other than agriculture.
“Agriculture, forestry and fishing contracted to -0.2 per cent from 4.6 per cent growth recorded in 2020,” he said.
The agriculture industry, which accounts for over a quarter of the country’s GDP, is expected to underperform due to adverse weather patterns, according to the survey.
“The country’s macroeconomic environment is expected to remain stable despite the likelihood of a rise in inflation, weakening of the Kenyan Shilling against its major trading currencies and significant rise in energy prices,” the survey showed.
It stated that while inflation dropped in the first quarter of 2022, it is expected to grow in the second and third quarters due to rising energy prices as well as increases in the prices of other commodities, such as food.
According to the poll, GDP growth in 2018 was 5.6 per cent, but it dipped to 5.1 per cent in 2019.
Education (214 per cent), lodging and food services (52.5 per cent), and banking and insurance activities were the key drivers of growth last year (12.5 per cent).
Manufacturing (6.9 per cent), wholesale and retail commerce (7.9 per cent), and transportation and storage (7.9 per cent) were all key drivers of growth last year (7.2 per cent).
