Progress on Project Implementation of National Accounts Kenya National Bureau of Statistics 12 th December, 2014

Outline Introduction Rationale for rebasing Process involved Achievements Pending activities 2

 KNBS embarked on the revision of NAS in 2010 with a view of improving the quality of NAS and implementing recommendations of 2008 SNA  Rebasing (2001 to 2009) and revisions of the national accounts (2006 to 2013)  Development of Supply and Use Table as an integral part of the revisions  The implementation is being done with the support of a NAS consultant  Technical support has been provided by MSA from IMF, East AFRITAC  Additional financial support by MEFMI  Introduction

 Implement recommendations of 2008 System of National Accounts (2008 SNA)  Change the base year from 2001 to more current base year to  Update the production structure;  Update the structural changes in relative prices of various products and;  Incorporate product changes due to developments and innovations  Update consumption patterns, utilization and acquisition of capital goods  Adopt the current classification of economic activities Why current revision/rebasing?

Process of current revision 1 st step Took stock of the available data and assessed their suitability Formulated a data collection strategy to fill the gaps. 2 nd step Carried out various surveys Analyzed and validated the data Reviewed the available information to inform choice of the base year

 Kenya Integrated Household Budget Survey 2005/06;  Kenya Population and Housing Census 2009;  Census of Industrial Production (CIP) 2010;  Integrated Survey of Services (ISS) 2010);  Survey of Trade Margins 2010  Cost of Agricultural Production Survey (CAPS) 2011;  Construction Survey (under International Comparison Program- ICP), 2011;  National Education Accounts conducted by KNBS, MOE(Ministry of Education) and UNESCO, 2012 and;  Livestock reports by IGAD and ILRI Surveys undertaken

 In addition to the listed intermittent sources, the following administrative sources were also utilized : – Government Finance Statistics; – VAT turnover data from Kenya Revenue Authority – Balance of Payments; – Trade Statistics; – Labour Enumeration Survey; – Monetary and Financial Statistics from Central Bank of Kenya and; – Other relevant administrative records from various Ministries. Other data sources (contd)

Process of current revision 3 rd step Rebased the estimates Invited stakeholders and other external experts to peer reviews the revised estimates – The peer reviewers were drawn from IMF, WB, AfDB, Zambia, Ghana, and The Gambia Reviewed the estimates based on the comments from experts

Revised annual national accounts statistics for the period 2006 to 2013 (published) Revised quarterly national accounts statistics for the period 2006 to second quarter 2014 (published) Supply and Use Tables (SUT) (published) Input-Output Table (IOT) and Social Accounting Matrix (SAM) Achievements

Pending activities 1 Linking the revised NAS to the 2001 base year and further to 1982 Publishing the IOT and SAM (scheduled for May 2015) Develop and disseminate QGDP by expenditure approach by Dec 2015 (in progress) Rebasing the national accounts to fulfill the EAC requirement to have the new base year as 2015 (by 2018) 10

Expand scope of Annual and Quarterly NAS further and disseminate by 2017 Develop data collection strategy and revision policy for NAS to inform the next revision (by 2017) Undertaking censuses and surveys that will provide requisite data for the next revision Pending activities 2

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