Kenyan economy to grow by 6.5pc in 2014, says IMF
The International Monetary Fund is predicting that the Kenyan economic growth will improve to around 6.5 per cent next year as the country continues to reap from a smooth political transition.
The Bretton Woods institution said the projection is based on the stronger-than-expected growth figures released by the Kenya National Bureau of Statistics.
On Friday, KNBS said election jitters heavily suppressed investments in manufacturing, tourism and financial sectors, depressing growth in the first quarter.
However, favourable weather conditions helped the economy return a good performance.
IMF representative Ragnar Gudmundsson said growth rates this year are expected to be around 5.5 per cent, up from 4.7 per cent recorded in 2012.
“We expect that the smooth political transition will translate into faster growth during the second half of the year as investment plans which were on standby start materialising,” Mr Gudmundsson said.
Key earners
According to KNBS, good weather in the first quarter boosted the tea, vegetables and flower sectors which are key foreign exchange earners.
The IMF views were echoed by Razia Khan, head of Africa research at Standard Chartered Bank, who said the results were “surprisingly strong”.
“I would have thought that (the 2013) elections would have a bigger impact on activity,” Ms Khan said.
The Kenyan government is aiming for a double-digit growth and hopes large-scale infrastructure projects will enable the economy to reach middle-income status by 2030.
