/ 13 February 2001

DROUGHT SEES KENYAN ECONOMY CONTRACT

KENYAS gross domestic product fell 0.3% in the 12 months to November, the first time the economy has shrunk since independence from Britain in 1963. In its latest monthly economic review, the Central Bank of Kenya said the economy was hit by prolonged drought and severe power rationing that forced businesses to use expensive generators. The bank said the effects of poor infrastructure, the continued mismanagement of key agricultural institutions and insecurity also hit economic growth. The bank predicted the economy would stay weak in the first half of 2001 before recovering in the second half if the long rainy season, which runs from March to May, bring as much rainfall as expected. – Reuters