NAIROBI (Xinhua) --
Kenya’s economy grew by 5.8 percent in
2016, slightly up from 5.7 percent in 2015 buoyed by tourism and
ICT sectors, the national statistics bureau said on Wednesday.
Kenya National Bureau of Statistics (KNBS) announced in the
annual Economic Survey 2017 released in Nairobi that tourism was
the best performer as international arrivals went up by 13.5
percent to 1.34 million in 2016 from 1.18 million in 2015.
According to the Economic Survey, revenue from the tourism
sector went up by 17.8 percent to 9.97 million U.S. dollars in
2016 from 8.46 billion dollars in 2015.
Information Communication and Technology was also a major
driver of the economy growing at 9.7 percent in 2016 compared to
7.4 percent growth in 2015.
KNBS Director-General Zachary Mwangi attributed the economic
growth to the level of growth recorded in key economic sectors
including mining, which recorded a 6.3 percent growth in mineral
output from 1.6 million tonnes to 1.7 million tonnes and
increased earnings from the tourism sector.
"The other sectors that registered significant improved
performance in economic activity were the ICT sectors, the real
estate, transport and storage," said Mwangi, reviewing
activities in diverse sectors of the economy and the social and
According to the survey, the overall economic output, the
Gross Domestic Product (GDP) has shot to 70.5 billion dollars in
2016 from 63.7 billion in 2015 due to the growth in the mining
sector, the real estate and infrastructure projects under
The official said the current economic output report outlined
the policies, programs and projects which the government set to
implement and to deliver in order to accelerate the economic
The Kenyan economy reaped from the growth in accommodation
and food services, which recorded a growth of 13.3 percent after
contracting 1.3 percent in 2015.
Kenya’s construction sector, mining and quarrying sector
recorded good results in 2016 while the financial and insurance
sector recorded a slowdown in 2016.
According to the economic survey, the agriculture, forestry
and fishing sectors recorded a decreased growth from 5.5 percent
to 4 percent in 2016, partly affected by the drought, which led
to a reduction in the overall output of crops.
The financial sector also recorded a decline, growing by 6.9
percent in 2016 compared to 9.4 percent growth in 2015 amid the
amendment of the banking act that introduced capping of interest
rates on loans in the fourth quarter of 2016.
Kenya’s tea sector grew by 18 percent to 473 million tonnes
while the coffee sector recorded an output of 10.8 percent to
record 46.1 million tonnes.
The maize production, which is the staple food, recorded the
biggest drop in production to negative 12.7 percent.
The number of 90 kg bags dropped to 371 million bags while
sugarcane production also recorded a slowdown to 640 tonnes.
The economic survey put a value of water resources in Kenya
at 400 million U.S. dollars.
According to the survey, other factors likely to affect the
economy include the continued deceleration in growth of credit
to the private sector that has stabilized at 4 percent owing to
the interest rate capping.