Kenya's economy projected to expand 5.9pc in 2016 - WB

Good agricultural performance has contributed to the World Bank's positive outlook of Kenya's economic prospects. PHOTO | FILE |  NATION MEDIA GROUP

By GEOFFREY IRUNGU

In Summary

• The World Bank attributed the positive outlook to low oil prices, good agriculture performance, supportive monetary policy and ongoing infrastructure investments.

• Kenya Vision 2030: Mega projects well under way but growth remains elusive
• Informal sector is the new economic reality in developing countries

The World Bank projects that Kenya’s economy will grow by 5.9 per cent this year after hitting an estimated 5.6 per cent last year.

“Kenya’s economic performance remains solid, with the growth rate expected to improve from 5.6 per cent in 2015 to 5.9 per cent in 2016. It is projected to rise further to six per cent in 2017,” said the Bank when launching a new report on the economy.

The report – focusing on the informal sector – attributed the positive outlook to low oil prices, good agricultural performance, supportive monetary policy and ongoing infrastructure investments.

The Bretton Woods institution said that Kenya’s economic performance in 2015 had exceeded the average growth for sub-Saharan Africa countries consistently since 2009.

However, it added that the Kenyan economy remained vulnerable to domestic risks that could moderate the growth prospects.

“These [risks] include the possibility that investors could defer investment decisions until after the elections, that election-related expenditure could result to a cut back in infrastructure spending, and that security remains a threat, not just in Kenya, but globally,” said the Bank.