By Eric Ombok
Dec. 22 (Bloomberg) -- Growth in Kenya’s economy, the largest in east Africa, slowed to 2.1 percent in the third quarter from 6.3 percent a year earlier, the National Bureau of Statistics said.
The decline was the result of “post-election violence, the global economic slowdown and financial crunch, the unprecedented rise in fuel prices and high food prices that emanated from food shortages,” the Nairobi-based agency said in an e-mailed report today.
Kenya, Africa’s biggest exporter of black tea, is rebuilding its economy in the wake of ethnic fighting that erupted after a dispute over presidential elections on Dec. 27. The violence caused $3.7 billion in damage to the economy, including the loss of thousands of overseas visitors. Tourism generates about 10 percent of annual economic output.
Agriculture, which accounts for about a quarter of economic output, contracted by 4.7 percent compared to a 0.3 percent contraction a year earlier, the bureau said.
“The decline was mainly due to low production of food crops owing to unfavorable weather,” according to the statement.
To contact the reporter on this story: Eric Ombok in Nairobi via Johannesburg at abolleurs@bloomberg.net.
Last Updated: December 22, 2008 08:37 EST
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