Nairobi — Kenya’s economy grew by 7.5% in 2021, compared to a contraction of 0.3% in 2020, the Kenya National Bureau of Statistics has revealed.
KNBS says growth has been boosted by the recovery from the effects of the COVID-19 pandemic.
All economic activities recorded positive growth except for agriculture which declined by 0.3% and was mainly caused by unfavorable weather conditions in various parts of the country, which led to a reduction in the agricultural and animal production.
The tea, coffee, maize and wheat sub-sectors recorded negative growth while sugar cane, rice and cut flowers recorded positive growth.
“The country’s macroeconomic environment is expected to remain stable despite the likelihood of rising inflation, the weakening of the Kenyan shilling against major trading currencies and the significant rise in energy prices,” the director said. General of KNBS, Macdonald Obudho.
“We are aware of the Russian-Ukrainian war which is the root of part of this problem [inflation] and our seriously changed climate model is also likely to contribute to what we are likely to face in terms of inflation rates.
Accommodation and food services recorded the highest growth rate at 52.5% compared to a decline of 47.7% in 2020 following the reopening of hotels, bars and restaurants after controlled closures to manage the spread Covid-19 infections.
The education sector posted the second-highest growth rate at 21.4%, down from a 9.3% decline in 2020 following the restart of in-person learning in schools and other institutions. ‘education.
The manufacturing sector’s contribution to GDP increased by 6.9%, compared to negative growth of 0.4% in 2020.
In 2021, the construction sector grew by 6.6% compared to growth of 10.1% in 2020.