The economic activity in the domestic economy remained vibrant in 2019 although the performance was slower relative to 2018. The real Gross Domestic Product (GDP) grew by 5.4 per cent in 2019 compared to a growth of 6.3 per cent in 2018. The growth, albeit slower than 2018 was spread across all sectors of the economy but was more pronounced in service-oriented sectors.
The slower growth in 2019 was also reflected in other macroeconomic indicators. The annual inflation increased from 4.7 per cent in 2018 to 5.2 per cent in 2019. The upsurge in inflation was mainly due to less favourable weather conditions in first half of 2019. Weather conditions gradually improved over the remaining part of the year causing drops in food as well as overall inflation. Prudent macroeconomic policies as well as a relatively stable Kenya shilling against the major currencies especially the US dollar helped in containing the inflation.