Kenya’s economy grew by 5.9% in the first quarter of 2016 compared to 5% over the same period the year before. This was revealed by the Kenya National Bureau of Statistics (KNBS) in a report which indicates that the growth was spurred by a rebound in Tourism. This growth level for the period comes behind 7.6% recorded in Q1 2011.

Data from the statistics office shows that the tourism sector grew most significantly in the country. Number of tourist arrivals at major airports increased from 231,038 in Q1 2015 to 261,404 in Q1 2016 as measures were implemented to boost tourist arrivals. “The most notable improvement was a rebound in activities of accommodation and food services which expanded by 12.1% in the period under review compared to a contraction of 11.4% during the same quarter in 2015,” said the report. Last year’s performance resulted from general concerns over securities issues in the country. However in the first three months of the year, not only tourism recorded good performances.

Truly, agriculture, forestry and fishing grew by 4.8% in Q1 2016 against 2.9% in 2015, information and communication improved by 9.7% from 8.6% previously. The power sector also expanded by 8.5% with a total output of 2,241.18 Kwh in the quarter under review. But growth in the construction, manufacturing and financial sectors was slower than the previous year, 9.9% (from 12.6%), 3.6% (4.1%) and 8% (10%) respectively.

The report highlighted that global slump in oil prices favored the GDP growth as Kenya imports the commodity.

Despite the increase in GDP, inflation in the East Africa’s largest economy rose to average 7% during Q1 2016 compared to 5.8% in Q1 2015.

Kenya recorded a first quarter growth of 4.7% in 2012, 5.8% in 2013 before dropping to 4.7% in Q1 2014. Government forecasts the economy will grow 6% in 2016 and 7% in the medium term, compared with 5.6% growth last year.

Schadrac Akinocho