- The current account deficit narrowed by 39.0 per cent to Sh84.9 billion, from Sh139.3 billion the previous year.
- The manufacturing sector expanded by two per cent compared to 3.8 per cent growth in the corresponding year.
The country's economic performance for the three months period to March 31 expanded by 5.3 per cent compared to 6.2 per cent the same period last year.
This is as per the latest Gross Domestic Product Report by the Kenya National Bureau of Statistics (KNBS).
It largely attributes the growth to a rebound in agricultural activities, which grew by 5.8 per cent owing to sufficient rainfall experienced during the period under review.
"Most macroeconomic indicators showed upward trajectory during the quarter under review," KNBS says in a statement.
However, inflation rose to an average of 9.13 per cent from 5.34 per cent in the first quarter of the previous year on the back of significant spikes in food and energy prices.
The Kenyan Shilling depreciated against most of the major foreign currencies compared to the corresponding quarter of 2022.
On average, the Shilling ceded ground against US Dollar, Euro, and Pound Sterling by about 11.1 per cent, 6.1 per cent and 0.5 per cent, respectively.
"The Kenyan currency, however, strengthened against Japanese Yen, South Africa Rand, Ugandan Shilling and Tanzanian Shilling," KNBS says.
Further during the period under review, the costs at which consumers accessed loans also went up, as the Central Bank Rate(CBR) was reviewed upward from 8.75 per cent in February to 9.50 per cent as of March.
This is compared to seven per cent in the first quarter of the previous year.
Broad money supply expanded by 10.4 per cent from Sh4.7 trillion as at March last year to Sh5.2 trillion.
The Nairobi Securities Exchange (NSE) share index declined to 1,622.0 points from 1,847.0 points last year.
The current account deficit narrowed by 39.0 per cent to Sh84.9 billion, from Sh139.3 billion the previous year.
According to the statistics body, the 5.3 per cent growth was also on account of significant growths in various sectors which recorded marginal growths.
Agriculture, forestry and fishing expanded by 5.8 per cent compared to a contraction of 1.7 per cent the previous year, attributable to favourable weather conditions that led to enhanced production.
The manufacturing sector expanded by two per cent compared to 3.8 per cent growth in the corresponding year.
"In the manufacture of food products, growth was mainly supported by manufacture of bakery products and processing and preservation of fish which expanded by 15.2 and 7.2 per cent, respectively," KNBS says.
However, the construction sector recorded a decelerated growth of 3.1 per cent in the quarter under review, compared to the six per cent growth realised the previous year.
The decelerated growth was a result of declined cement consumption which declined by 7.7 per cent.
On the other hand, Information and Communication Technology recorded 8.7 per cent growth, transportation and Storage 6.2 per cent, and financial and insurance 5.8 per cent.
Wholesale and retail trade recorded 5.7 per cent in growth.
"In contrast with the same period last year, where agricultural production contracted, all sectors recorded positive growth, though the magnitudes varied across activities," KNBS says.