Written by Kennedy Kangethe | From Capital FM

Kenya’s economy expanded by 5.8 percent in the second Quarter of 2014 compared to the second quarter of 2013, recording a 7.2 percent increase according to new data from the government.
In the first quarter of 2014 the country’s Gross Domestic Product (GDP) grew at 4.4 percent.

According to the latest data from the Kenya National Bureau of Statistics, the growth was mainly supported by robust growth in the construction sector at 18.9 percent, Manufacturing at 9.1 percent financial and insurance at 8.3 percent, Information Communication and Technology at 6.4 percent and wholesale at retail trade at 6.8 percent.

Merchandise trade deficit widened to Sh262 billion from Sh204 billion recorded in 2013, with the widening of trade balance attributed to increase in import expenditure.

Increase in imports of fuel and lubricants saw the Import bill increase by 22.5 percent to Sh403.4 billion in the second quarter of 2014 compared to Sh329.4 billion recorded same period last year.

Total exports value increased by 13 percent to Sh141 billion from Sh124.8 billion in 2013, while current account deficit worsened by 49.5 percent to Sh142 billion as a result of an increase in international services by eight percent from Sh50 billion in 2013 to Sh54 billion.

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