The economy has grown despite reports, says CS

The country’s economy is growing steadily, the Industry Cabinet Secretary has said, trying to allay fears of a collapse.

Mr Adan Mohamed reassured Kenyans that the government is proactive in efforts to support local companies in an effort to make sure Kenya maintains its positive economic growth.

“Recent reports in the media have been highlighting select closures of businesses in the country.

"While there have been instances of such closures, it is important to note the steady growth of our economy has averaged six per cent, way above the global average of three per cent,” Mr Mohamed, who was speaking at the conclusion of the World Economic Forum in Davos, Switzerland, on Monday, said.

He added: “This has led to massive growth of investments to over 300 per cent over the past three years alone.”

Mr Mohamed said the government is doing its part to reduce the cost of production.

The CS added that business margins would be improved by reduction of the cost of power through increased supply, reduction in cost of logistics by expanding capacity and improvement in efficiency at the Port of Mombasa, construction of the standard gauge railway and roads.

“It is important to appreciate that the levels of investment in Kenya as recorded by reputable global firms is on an upward trend, occasionally some of them will fail...because of internal operational issues that they may fail to surmount,” Mr Mohamed said.