The mill bin and
ball mill at the
Lolgorien licence
area, in Western
Kenya
 
Nairobi, Kenya — MININGREVIEW.COM — 03 October 2008 – Growth in the economy of Kenya – the largest in East Africa – rebounded in the second quarter of 2008, boosted by stronger output in the country’s retail industry and substantial expansion in the mining sector.

Confirming this development here, the National Bureau of Statistics said the economy had expanded by an annual 3.2%, compared with a contraction of 1.1% in the previous three months. The wholesale and retail trade industry had grown by 6.2% in the period, but the major contributor was the mining and quarrying sector, which had expanded by 35.7%.

Kenya’s agriculture and tourism industries suffered in the first quarter, as food production dropped and visitor numbers declined in the wake of ethnic fighting that erupted after a dispute over presidential elections. Kenya is the world’s biggest exporter of black tea, and agriculture accounts for about a quarter of the nation’s US$16.1 billion (R130 billion) economy. Tourism generates about 10% of annual economic output.

The agriculture industry grew 2.8% in the second quarter, while the hotel and restaurant industry shrank by 31.5%, the bureau said.