Kenyan Economy to Surge 6% – World Bank

Kenyan Economy to Surge 6% – World Bank
Kenya has east Africa’s largest economy

AFRICANGLOBE – The Kenyan economy, the biggest and fastest growing in the east African economic bloc, is forecast to surge by almost 6 percent this year boosted by greater capital flow into the economy and low interest rates.

This is according to the World Bank Kenya Economic Update, which was released on Monday, stating this growth would be driven by the country’s steady macroeconomic climate, the non-violent polls in March this year and efficient changeover in political power.

Diarietou Gaye, World Bank Country Director for Kenya urged the Kenyan government to invest in infrastructure and expanding domestic energy production.

“The government needs to create an enabling environment for private sector-led growth…sustaining sound monetary and fiscal policies,” Business Daily quoted Gaye as saying.

But, Gaye said, the World Bank noted that the Kenyan economy is still operating below its potential and remained exposed to outside jolts which weakened growth prospects and attempts in poverty reduction.

Business Daily quoted the bank’s Country Economist for Kenya, John Randa, as saying the economy was in desperate need for structural reforms to advance the business environment.

This included tax and spending measures which boosted savings and investment to be extended to manufacturing exports.

 

By: Oyeniyi Adegoke