Kenya’s inflation dropped to 7.9% in June 2023, down from 8% reported in May 2023, as food prices remained relatively high.
The latest data from the Kenya National Bureau of Statistics (KNBS) released on 4th Tuesday 2023 indicate that the country’s Gross Domestic Product (GDP) expanded by 5.3 percent in the first quarter of the year, a faster pace than 3.7 percent in the previous period ending December 2022.
According to the latest figures, the country’s rate of growth was also higher than the quarter ended September (4.3 percent) and the second quarter of last year (5.2 percent), when the nation battled severe drought and a disruption of the global supply chain due to the Russia-Ukraine war.
The KNBS data shows the economy, from January this year posted the fastest growth in the last four quarters. This growth, the body noted is attributed the sufficient rainfall which lifted farming activities to a growth of 5.8 percent, the first since the last quarter of 2020.
“The growth was largely supported by a rebound in agricultural activities, which grew by 5.8 percent owing to sufficient rainfall experienced during the quarter under review.
The significantly improved performance of the sector was attributable to favourable weather conditions that led to enhanced production, especially that of food crops during the period under review. The performance was evident in the significant increase in the export of vegetables and fruits recorded during the quarter in review,” the KNBS report reads in part.
The Consumer Price Index and Inflation Report also shows that the price of a 13kg cooking gas cylinder retailed at KSh 3,069.01 in June, compared to KSh 3,125.40 in May 2023. This follows a move by the government to remove all taxes on imported Liquified Petroleum Products (LPG).
The three taxes include 8% Value Added Tax (VAT), 3.5% Import Declaration Fees (IDF) and 2% Railway Development Levy (RDL). Kenya Bureau of Statistics (KNBS) reported a significant drop in prices of cooking gas and some fresh food items like potatoes.
