Nairobi: Kenya’s growth is projected to rise from 5.4 percent in 2014 to 6-7 percent over the next three years (2015-2017), according to the latest Kenya Economic Update (KEU) published by the World Bank.
Diarietou Gaye, the World Bank’s Country Director for Kenya, said, “Kenya is emerging as one of Africa’s key growth centers with sound economic policies in place for future improvement. To sustain momentum, Kenya needs to continue investing in infrastructure and jobs, improve its business climate, and boost it exports.”
The country’s expansive fiscal policy allowed it to finance major infrastructure projects without putting excessive pressure on domestic financing, it says. Sluggish demand for exports and their declining production is widening the country’s current account deficit. The report suggests that in order to anchor and sustain growth, Kenya needs to boost productivity and improve the business environment to regain and increase its competitiveness.
“Kenya’s accommodative monetary policy stance has supported economic activities without triggering inflation or putting pressure on the exchange rate.” said John Randa, World Bank Group’s Senior Economist for Kenya and lead author of the report.
