ECONOMY

Sectors that slowed economic growth in 2017

Share
Share

[dropcap]K[/dropcap]enya’s economy is estimated to have expanded by 4.9% in 2017 compared to a revised growth of 5.9% in 2016 due mainly to the uncertainty associated with prolonged electioneering period coupled with adverse weather conditions.

Speaking at the launch the launch of the 2018 economic survey report on April 25th, National Treasury Cabinet Secretary Henry Rotich noted that the agriculture sector recorded mixed performance recording a slowed growth of 1.6% compared to 5.1% growth in 2016. “The government has, however, identified three broad areas in 2018 that will ensure the country achieves food security and improve nutrition,” he said.

Enhancing of large scale production, boosting small holder productivity and reducing the cost of food have been identified as the measures that will scale up the agriculture value chain, he said. Mr Rotich said that the national and county governments are working together to ensure each devolved unit has at least one value-addition processing plant.

READ ALSO: Tech enthusiast rolls out paperless insurance

The Director General of the Kenya National Bureau of Statistics (KNBS), Mr Zachary Mwangi, said maize production declined from 37.8 million bags in 2016 to 35.4 million bags in 2017. Similarly, he added that sugarcane production dropped from 7.2 million tonnes in 2016 to 4.8 million tonnes in 2017. “The recorded decline in maize and sugar resulted in huge imports of both the commodities to bridge the deficit,” he said.

Other Agricultural products that under-performed were wheat, tea and coffee which declined by 23.1, 7.0 and 15.1 percent, respectively.

Mr Mwangi said despite reduced production of major crops during the period under review, better prices were realised for the marketed agricultural output.

“The value of marketed production increased by 8.2 percent from Sh. 413.2 billion in 2016 to Sh 446.9 billion in 2017,” he said.

The volume of fresh horticultural exports also increased from 261.2 thousand tonnes in 2016 to 304.1 thousand tonnes in 2017, while the marketed milk declined by 17.4% from 648.2 million litres in 2016 to 535.7 million litres in 2017.

The DG said the outlook for 2018 is promising noting that the weather forecast points to a possibility of sufficient and well spread long rains this year, which will be a boost for activities in agriculture. Drought coupled with pests such as the fall armworms  led to the overall decline in agricultural production in 2017.

NEXT: How blockchain is the changing the business of money

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
Stanley Kamanguya CEO ICT Authority
ECONOMYTECHNOLOGY

Report Reveals Billions of Shillings Kenyans Earned From Google in 2023

Google products and services helped provide an estimated $900 million (about Ksh115...

KRA Alternative dispute resolution
ECONOMY

KRA Unlocks Sh22 Billion Through Alternative Dispute Resolution

Kenya Revenue Authority (KRA) has unlocked Ksh21.9 billion through the Alternative Dispute Resolution (ADR) mechanism. This follows the conclusion...

President Ruto Provides Update on Affordable Housing
ECONOMYNEWS

President Ruto Provides Update on Affordable Housing

In his State of the Nation Address at the National Assembly today,...

President Ruto’s Cabinet Resolution: Economy of Kenya Is Doing Good
ECONOMYNEWS

President Ruto’s Cabinet Resolution: Economy of Kenya Is Doing Good

In 2022, the Kenyan people turned to William Ruto to lead the...