The defunct East African Community, EAC, was built on the premise of harnessing the vast agricultural potentials of the sub-region for the emancipation of the entire continent. But the dictates of political wrangling coupled with teething economic difficulties led to demise of that promising concept. But, thanks to foresight, agriculture was the main driver for the Kenyan and Ugandan economies in the first three months of this year, expanding almost 10 per cent from 2017.
Kenya said its economy expanded by 5.7 per cent in the first three months of 2018, compared with 4.5 per cent over the same period last year.
Uganda’s economy for its part expanded at 6.4 per cent, from 4.5 per cent over the same period last year, driven by agriculture which recorded a growth of 6.6 per cent.
On Tuesday, the Kenya National Bureau of Statistics, KNBS, said that the agriculture sector expanded by 5.2 per cent in the first quarter, compared with one per cent over the same period last year, lifting the country out of its growth lull.
Kenya now expects growth to rebound to 5.8 per cent this year, from 4.9 per cent in 2017. According to the KNBS, the significant acceleration in growth was mainly attributable to improved weather conditions, as well as improved confidence among businesses and consumers after the conclusion of the general election in 2017.
Both Uganda and Kenya have witnessed good rainfall this year, in sharp contrast to the dry spells of last year. This has boosted the foreign exchange earners of the two countries such as cocoa, tea and coffee which account for close to one-third of their economic output.
In Kenya, the Central Bank Governor, Patrick Njoroge is highly enthusiastic about the emerging economic indices. In his words, “We expect better crop production based on favourable weather, and as the government’s new development agenda kicks into gear, we should see the economy expand 6.3 per cent this year”. For some economic analysts, it remains to be seen whether his projections will be realized.
