Economy grows by 4.4 pc in Q1 2010

Kenya's economy grew by 4.4 percent in the first quarter of this year from 5.6 percent in the same period last year and agriculture turned positive after six quarters of contraction, the government said on Thursday.

On a seasonally adjusted basis, GDP expanded by 3.4 percent during the quarter against the last quarter of 2009.

"This represents the highest quarter to quarter growth since the fourth quarter of 2004," the Kenya National Bureau of Statistics (KNBS) said in a statement.

"All industries except electricity supply recorded positive growth in the first quarter 2010."

KNBS said agriculture, which accounts for nearly 25 percent of GDP in east Africa's largest economy, expanded by 4.6 percent during the period, after six straight quarters of negative growth.

Kenya has had good rainfall since late last year after a prolonged drought in many parts of the country that caused food shortages and power outages.

Manufacturing posted a 7.8 percent growth in the period, up from 5.0 percent a year earlier, KNBS added.