Kenya's economic growth 'hindered by lack of rain'

21/12/2009

Kenya experienced little economic growth during the third quarter of 2009, it has been discovered, something that has been partly attributed to droughts in the country.

Due to a lack of rainfall, agricultural output during the period was weak as the country saw its third consecutive season of drought, reports Bloomberg.

Agriculture is integral to the economic activity of Kenya, with 80 per cent of its workforce being engaged in the industry.

David Achungo, an investment manager at AIG Investments' Kenyan office, told the news agency: "Quarter three was a time of rationing water and power and poor rains for agriculture."

According to the latest figures, which were compiled by economists surveyed by Bloomberg News, the country's gross domestic product grew by 2.1 per cent compared to the same period of 2008, but was unchanged on the previous three months.

The World Bank has now estimated that Kenya's growth could rise to four per cent in 2010 if rainfall is heavier next year.

Written by Dan ParrADNFCR-1663-ID-19522984-ADNFCR

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