Kenya

Drought Slows Kenya's Economic Growth

NAIROBI (June 20) XINHUA - Kenya's economic growth slowed further in March as a prolonged drought and erratic power supply began to take its toll, the Central Bank of Kenya has said.

The monthly Economic reviews issued here Monday by the bank said that the country's economy expanded by 1.2 percent in the year to March, down from 1.4 percent in 1999.

The bank attributed the slow growth mainly to the drought which hurt agricultural output and power supply and to weak investor confidence and crumbling infrastructure.

Prolonged drought has left millions of Kenyans threatened with famine and slashed Kenya's hydroelectric power generating capacity, and intensified power rationing began late last month, with industrial users facing only 32 hours of electricity a week.

The bank said agricultural and manufacturing sectors recorded growth of just 1.1 percent and 0.9 percent respectively, in the 12 months to March.

Earlier this month, Kenyan President Daniel arap Moi once again appealed international community for emergency food aid to 3 million Kenyans facing famine due to prolonged drought.

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Received by NewsEdge Insight: 06/20/2000 04:56:27