The latest statistics from the Kenya National Bureau of Statistics (KNBS) on gross domestic product (GDP) shows that the economic slowdown that started in the first quarter of 2012 has moved over again into the second quarter of this year. The report says that the economy expanded by 3.3% during the quarter under review compared to a growth of 3.5%, in the second quarter of 2011. Seasonally adjusted gross domestic product grew by 0.1% in the second quarter of 2012 after increasing by 0.5% in the first quarter.
As per the report, the slight ease of inflationary pressure in the second quarter was mainly driven by lower food and fuel prices and the tightening the monetary policy stance. Overall inflation rate declined to 10.05 in June from 14.49 in June 2011. During the review period the Kenya Shilling remained relatively stable against major world currencies.
The report further notes that despite the slowdown of economic activities, a handful of sectors recorded improved performance, with impressive expansions in the electricity and water and fishing sectors. They grew by 13.0% and 9.6% respectively. The significant growth in the electricity sector was against a backdrop of improved hydro-power generation which resulted in cheaper costs of inputs. Financial inter-mediation and transport and communications also performed well during the quarter under review.