Politics and policy
By DUNCAN MIRIRI
In Summary
- The Treasury said the economy likely expanded by 5.3 per cent last year, but growth could be more robust this year, thanks to momentum picking up in a range of sectors like farming, real estate and financial services.
Kenya expects the economy to expand by 6.9 per cent
this year, up from an initial growth forecast of 6.5 per cent, the
Treasury said in a budget policy document seen by Reuters on Wednesday.
Analysts say the east African nation has struggled to attain
its true growth potential of above 6 per cent in recent years, due to a
host of challenges including political uncertainties, periodic droughts
and frequent attacks blamed on Islamists.
The Treasury said the economy likely expanded by
5.3 per cent last year, but growth could be more robust this year,
thanks to momentum picking up in a range of sectors like farming, real
estate and financial services.
"The growth outlook is promising due to continued implementation of bold economic policies," the Treasury said in the document.
Inflation has been stable in recent months, staying
inside the government's preferred band of 2.5-7.5 per cent, while
average commercial lending rates fell by a percentage point to 16 per
cent last October.
The shilling has depreciated against the dollar in
recent months but the drop has been gradual and the currency has been
more stable than most of its frontier market peers like the Ugandan
shilling.
The Treasury confirmed in the budget policy
statement it had sought a precautionary loan from the International
Monetary Fund to help it deal with any shocks to the economy in future.
-Reuters-
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