Europe’s economic recovery signals steady growth in Kenya

A worker at Oserian Flower Farm packs a Bouquet of roses for export. FILE 

By Kariuki Kamau

Kenya could enjoy steady economic growth in 2014, following improved purchasing power in advanced nations, an American energy-science firm R3 Sciences has said.

The firm said Kenya has relatively few policy and macroeconomic weakness “which allow it to best take advantage of economic improvements in advanced markets.”

“The boost in the US domestic financial outlook has a ripple effect globally since emerging markets often rely heavily on exporting goods to advanced markets. Those exports are reliant on the latter having enough money to afford them. The brisk recovery in larger economies will trickle down to other countries, and promote readier trading,’’ the firm said.

The firm also identified Rwanda, South Korea, the Philippines, Malaysia , Poland, the Czech Republic, Chile, Colombia, Peru and Mexico as other countries expected to enjoy vibrant growth.

It said 2013 was a tough year as world markets had low purchasing power. R3 Sciences put the growth of emerging markets at 4.8 per cent.

The firm said it expects growth in advanced markets to reach 1.9 per cent this year with that of the United States bolstered by improvements in the labour market and the shale energy revolution.

R3 Sciences said the US was poised to become one of the world’s leading producers, thanks to vast reserves in Texas, North Dakota and Pennsylvania. Texas is producing oil at par with Opec members like Venezuela and Nigeria.

R3 Sciences has developed a flare gas recovery system that enables oil producers and refineries reduce production costs by tapping the carbon emissions to the atmosphere.

The system allows oil companies condense the fluid into methanol that is then sold to industrial and domestic consumers. R3 Sciences is a unit of Enersciences Holdings which provides drilling fluids and services, and coil chemicals and power generation technologies for upstream operators.