Report: Kenya’s Agriculture, Manufacturing, Construction Sectors Grew in Third Quarter Of 2023

The agriculture, forestry, and fishing sectors registered a growth of 6.7 per cent in the third quarter of 2023 compared to a 1.3 per cent contraction in the corresponding quarter of 2022.

Kenya National Bureau of Statistics (KNBS) says the improved performance was attributed to favourable weather conditions that characterized the first three quarters of 2023.

Fruit exports rose by 84.3 per cent from 32,388.1 metric tonnes in the third quarter of 2022 to 59,684.5 metric tonnes in the period under review.

Similarly, vegetable exports and tea production rose by 35.4 per cent and 28.0 per cent to stand at 20,427.1 metric tonnes and 138,771.6 metric tonnes, respectively, in the third quarter of 2023.

Intake of milk by processors also increased.

However, production of sugarcane witnessed a decrease in the third quarter of 2023, with sugarcane deliveries declining by 55.1 per cent from 1,944.7 thousand metric tonnes in the third quarter of 2022 to 874.0 thousand metric tonnes during the review period.

Construction

The construction sector recorded a growth of 3.8 per cent in the quarter under review compared to 3.5 per cent growth in the third quarter of 2022.

Cement consumption rose by 5.9 per cent to stand at 2,430.5 thousand metric tonnes in the review period compared to the third quarter of 2022.

The quantity of imported bitumen expanded by 24.6 per cent from 24,929.5 tonnes in the third quarter of 2022 to 31,053.5 tonnes in the review period.

On the other hand, the volume of imported iron and steel decreased slightly from 198.8 thousand tonnes in the third quarter of 2022 to 198.1 thousand tonnes in a similar period in 2023.

The value of building plans approved in Nairobi City County declined from KSh 45.3 billion in the third quarter of 2022 to KSh 37.0 billion in the third quarter of 2023.

Credit advances to enterprises in the construction sector increased by 8.6 per cent to stand at KSh 149.6 billion in September 2023.

Manufacturing

The manufacturing sector grew by 2.6 per cent in the third quarter of 2023 compared to a growth of 1.8 per cent in the corresponding quarter of 2022.

In the manufacture of food products, growth was mainly supported by the processing of dairy and tea products. Milk deliveries to processors increased by 12.5 per cent from 187.0 million litres in the third quarter of 2022 to 210.4 million litres in the third quarter of 2023.

Tea production increased from 108.4 thousand metric tonnes in the third quarter of 2022 to 138.8 thousand metric tonnes in the corresponding quarter of 2023.

The growth of manufacture of food products was constrained by the processing of sugar,” KNBS said in its report.

Sugar production declined by 56.1 per cent to stand at 77.7 thousand metric tonnes in the third quarter of 2023. In the manufacture of non-food products, growth was supported by the production of cement, which grew by 6.8 per cent to stand at 2,541.8 thousand tonnes in the third quarter of 2023.

Credit advanced to enterprises in the manufacturing sector amounted to KSh 620.9 billion as of September 2023 compared to KSh 508.8 billion as of September 2022.

Overall, the country’s real Gross Domestic Product (GDP) grew by 5.9 per cent in the third quarter of 2023, compared to 4.3 per cent in the corresponding quarter of 2022.

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