APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA • Agriculture by far continues to remain a major driver of growth in the economy (Figure 10). The sector contributes about 24% to GDP, accounts for 65% of total exports and employs about 18% of formal employment. The factor responsible for this is largely policy-induced, which has witnessed a gradual shift away from rain-fed agriculture. This has been pursued through a combination of dynamic influences, namely, increased budgetary allocations to multiple-purpose dams to support irrigation in both the arid and semi-arid regions, improvements in extension services and subsidization of farm inputs. Though small, the manufacturing sector second in importance (12.4% of GDP). It is an important source of informal employment and the sector recorded a remarkable growth of 17% in 2007-2011. Figure 10: Sectoral Contributions to the GDP Growth, 2007-2013 Average contribution to the GDP (2007-2013) Agriculture, Forestry and Fishing 24,24 Manufacturing 12,39 Taxes on products 10,78 Transport and Communication 9,18 Real Estate 8,52 Wholesale and retail trade; repairs 7,51 Education 5,79 Financial and Insurance activities 5,59 Public administration and defence 4,49 Construction 4,22 Other Services 3,98 Electricity and Water 1,99 Human health and social work activities 1,90 Hotels and restaurants 1,62 FISIM -5,00 0,00 5,00 10,00 15,00 20,00 25,00 30,00 Note: Financial Intermediation Services Indirectly Measured (FISIM) Source: APRM - The 2nd Kenya Self-Assessment Report, February 2015 • While, strong capital imports because of rising infrastructure spending in energy and transportation has driven a relatively high current account deficit, the diversified nature of exports and their destination, mainly to region, and capital inflows, attracted by a stable macroeconomic environment, has shielded the economy against adverse external vulnerabilities; and | 145 |