Kenya to remain regional economic powerhouse, says report

US President Barack Obama and Kenya's Uhuru Kenyatta at the Global Entrepreneurship Summit 2015 held at Nairobi on July 25-26, 2015. GES 2015 reinforced Kenya’s prowess as the undisputed champion in new technology and an innovation hub in East Africa. PHOTO | FILE | NATION MEDIA GROUP 

In Summary

• The report says that beyond the entertainment and media industries, Nairobi — and Kenya in general — is emerging as a global leader in the financial services sector especially in mobile payments.
• The report also shows that Africa is turning from being just a recipient of development assistance into providing business opportunities for foreign direct investment (FDI).
• “Nairobi tops the list as Africa’s most attractive destination for FDI. This is in big part motivated by the fast-growing middle class that is setting the stage for a booming consumer market,” report adds.

By BRIAN NGUGI
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Kenya will remain a regional economic powerhouse with a gross domestic product growth close to 6.5 per cent in the next three years, a new report now projects.

Titled Economic Insight: Africa Q3 2015 the report released Wednesday by the Institute of Chartered Accountants in England and Wales (Icaew) says the growth will be helped by domestic demand and the emergence of a middle class in Kenya.

It adds, that closer regional integration in the East African Community (EAC), is expected to help drive economic expansion within member states with Kenya being the biggest beneficiary.

MOBILE PAYMENT LEADER

It also says that beyond the entertainment and media industries, Nairobi — and Kenya in general — is emerging as a global leader in the financial services sector especially in mobile payments.

“Mobile payments are now easier to make and more commonly used in Nairobi than in advanced cities like London or New York,” it says.

It notes that the mobile money transfer system is now being adopted in other countries, such as Tanzania, Afghanistan and India, becoming “one of the first examples of Africa’s global connections beginning to run the other way, in contrast to what has traditionally been the case.”

KENYA RISING

The report also shows that Africa is turning from being just a recipient of development assistance into providing business opportunities for foreign direct investment (FDI).

In Kenya, inward FDI from China has been a big part of this trend, with investment going mainly into primary resource sectors and infrastructure, the report notes.

“Nairobi tops the list as Africa’s most attractive destination for FDI. This is in big part motivated by the fast-growing middle class that is setting the stage for a booming consumer market,” report adds.

The report was produced by the Centre for Economics and Business Research