Kenya: Economy expands at softer pace in Q1 2022
The economy lost more steam in the first quarter of 2022, with GDP expanding 6.8% year on year. The result came below the 7.4% increase logged in the prior quarter, and was the softest expansion in a year. Moreover, underlying momentum also moderated in the first three months of the year, as GDP expanded a milder 1.2% in sequential terms (Q4 2021: +3.0% s.a. qoq).
The annual slowdown was largely due to growth in the accommodation and restaurants sector more than halving in the first quarter (Q1: +56.2% yoy; Q4: +118.6% yoy). Moreover, mining and quarrying posted 22.1% annual growth in the first three months of the year, which came in below the prior period’s 34.5% expansion. Additionally, manufacturing activity softened in the quarter (Q1: +3.7% yoy; Q4 +.4.9% yoy). These decelerations more than offset brisker growth in the construction sector (Q1: +6.4% yoy; Q4: +6.0% yoy) and in the transport and storage sector (Q1: +8.1% yoy; Q4: +6.5% yoy). Lastly, the all-important agricultural sector declined a softer pace of 0.7% in annual terms in Q1 (Q4 2021: -1.2% yoy).