KENYA – Kenya’s economy contracted by 5.7% in the second quarter of 2020 compared to an expansion of 5.3% in the second quarter of 2019, new data has revealed.

The study by the Kenya National Bureau of Statistics (kNBS) shows that the economy was significantly affected by the COVID-19 disease in the second quarter of 2020  characterized by substantial contractions in accommodation and food services, education, taxes on products/services, transportation and warehousing.

The study showed that the performance of most sectors of the economy was to a large extent negatively affected by the COVID-19 containment measures with output considerably constrained and in some cases, came to a complete halt.

“That included restriction of movement in and out of some counties, closure of learning institutions, closure of some businesses especially those in hospitality industry and near cessation of international travel among others,” reads the KNBS statement.

The overall performance during the review quarter was cushioned from a deeper slump by growths in agriculture, forestry and fishing activities at 6.4 percent, financial and insurance activities at 4.2 percent.

The agriculture sector’s performance was supported by a notable increase in tea production, cane deliveries, milk intake and fruit exports.

The manufacturing sector reported a contraction of 3.9 percent in the second quarter of 2020 compared to an expansion of 4.0 percent in the same period of 2019.

The construction sector recorded a slowed growth of 3.9 percent in the second quarter of 2020 compared to 7.2 percent growth in the second quarter of 2019.

At the same time, the period under review showed that most macroeconomics indicators were anchored on the need to cushion the economy from the effects of the COVID-19 pandemic.

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