Kenya's economy expands 6 pct in Q3

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NAIROBI, Dec. 31 (Xinhua) -- Kenya's economy expanded by 6 percent in the third quarter of 2018 compared with a 4.7-percent growth rate in the same period in 2017, the statistics agency said on Monday.

The Kenya National Bureau of Statistics (KNBS) said in a statement that the improved economic expansion was mostly supported by a pickup in activities of agriculture, construction, and electricity and water supply, as well as a rebound in the manufacturing sector.

The statistics bureau noted that despite a deceleration in growth rates, activities of accommodation and food services and information and communication attained the highest growth rates of 16 percent and 9.1 percent, respectively, in the third quarter of 2018.

The agricultural sector expanded by 5.2 percent compared to a growth of 3.7 percent in the same quarter of 2017, thanks to the favorable weather conditions, said the statistics agency.

KNBS added that quarter-on-quarter growth comparison shows that there was a rebound in manufacturing activities from a contraction of 0.1 percent in the third quarter of 2017 to a growth rate of 3.2 percent.

"The sector recovered from declines recorded in 2017 as shown by growth reported in the last three quarters of 2018. Improved performances were recorded in both manufacture of food and non-food activities, though production in some activities remained constrained," said the KNBS.

The statistics body said that the electricity and water supply sector increased by 8.5 percent in the third quarter of 2018 compared to a growth rate of 4.5 percent in the third quarter of 2017.

"This growth was mainly driven by substantial increase in generation of electricity using hydro and geothermal sources that are relatively cheaper to produce coupled with a significant drop in generation of electricity from thermal sources," the KNBS noted.

The statistics bureau said that transportation and storage sector grew by 5.4 percent in the third quarter of 2018, which was slightly higher than the 5.3 percent growth rate in the same quarter of 2017.

The data also revealed that consumption of light diesel, which is an indicator for transportation of passengers and freight, increased by 9.4 percent.

The agency said that seasonally adjusted gross domestic product, which compares consecutive quarters, grew by 0.9 percent in the third quarter of 2018 compared with 1.3 percent recorded in the second quarter of 2018. Enditem

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