IMF projects 6.5pc growth for Kenya

The International Monetary Fund (IMF) expects Kenya’s economy to grow by 6.2 percent in 2016 beating the government’s conservative estimates.

The National Treasury had estimated between 5.5 percent and 6 percent growth this year.

The growth is being supported by a resurgence of the tourism sector as well as the government’s policy to cut down on the import bill.

Treasury Cabinet Secretary Henry Rotich said continued investment in infrastructure projects will see growth rise by 6.5 percent which will boost growth in the country.

“With the ongoing infrastructure investments ,continued prudent macroeconomic policies, domestic resource mobilization and increasing role of the private sector in growth dynamics, the sub-Saharan region is projected to register a growth of 2.9 percent in 2017.our economic outlook will continue to remain robust with growth rates well over 6 percent,” Mr Rotich said.

IMF Regional Director Abebe Aemro Selassie however said obstacles such as the current drought and political jitters ahead of the 2017 elections could pull down the economy in 2017.

The polarizing nature of Kenyan election politics and uncertainty about the outcome, are among the root causes of economic slowdown.

Mr Selassie said for Kenya to maintain its momentum it has to navigate the terrain of unfavorable weather conditions to curb drought stricken areas.

‘‘The slowdown is happening when global growth is slow but steady. The growth is flat at 3 percent. To have slowdown in the region is most synchronizing to what is happening to the Kenyan economy,” he said.