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Kenya created less jobs despite GDP growth - Economic Survey

In Summary

• This was a drop from 2017 where 897,000 jobs were created

Treasury CS Henry Rotich speaks at the launch of the 2019 Economic Survey
Treasury CS Henry Rotich speaks at the launch of the 2019 Economic Survey
Image: Courtesy

A total of 840,000 new jobs were created last year, the 2019 Economic Survey launched on Thursday indicates.

The notes that 83.6 per cent of the new jobs were created in the informal sector and 16.4 per cent in the formal sector.

This was a drop from 2017 where 897,000 jobs were created.  In 2016,  832,900 new jobs were created.

 

The report published by Kenya National Bureau of Statistics noted that Education, Agriculture and manufacturing sectors were leading employers accounting for over 43 per cent in all jobs.

The report shows that the economy grew 6.3 per cent last year compared to 4.9 per cent last year. This is compared to 6.2 per cent GDP growth for Uganda and 6.6 per Tanzania.

Kenya is, however, doing better than most of the other countries globally.

Last year, global economic growth dropped by 3.6 per cent from 3.8 per cent in 2017. The growth was affected by political and geopolitical tension in some of the economies in the world.

However, Sub-Saharan Africa economy grew by 3 per cent from 2.9 per cent due to increased agriculture production, favourable weather conditions and increased infrastructure.

"Economy is expected to remain resilient and grow by over 6 per cent. We further expect vibrant growth in tourism and construction sectors due to ongoing infrastructure projects and the big four," Treasury Cabinet Secretary Henry Rotich said.

According to the survey, inflation eased from eight per cent in 2017 to 4.7 per cent last year. Inflation, as measured by the Consumer Price Index, was the highest in May 2017 hitting 11.7 per cent.

 

In December inflation rose to a 12 month high of 5.71 per cent, indicating tough economic environment endured by Kenyans throughout 2018. The rise is second to the one reported in September which touched an 11-month high of 5.70 per cent.

The survey further indicates that tourism earnings increased by 31.3 per cent to sh157.4 billion last year. International arrivals increased by 14 % to 2.027 million which this is the highest ever recorded number in history.