The economy of Kenya is expected to grow greatly this year of 2016 and that of 2017 according to a report released by the World Bank.
The World Bank says that this growth is and will be aided by the global low oil prices, an improvement in the agricultural sector, and an improved and convenient monetary policy environment in Kenya as well as government’s effort to better the infrastructure in the country.
This declaration comes as the country prepares for the next General Elections that are scheduled for August 2017 and World Bank says that the growth might come to a halt due to these elections. Corruption is also another major issue that might hold back the realization of the economic growth in Kenya.
“These include the possibility that investors could defer investment decisions until after the elections, that election-related expenditure could result in a cut back in infrastructure spending, and that security remains a threat, not just in Kenya, but globally,” World Bank said in its statement early Thursday.
According to the bank, Kenya’s gross domestic product is likely to expand to 5.9 percent in 2016 and 6 percent in 2017, from 5.6 percent last year due to the ongoing financial reforms.
“The most recent Kenya Economic Update … attributes this positive outlook to low oil prices, good agriculture performance, supportive monetary policy, and ongoing infrastructure investments,” World Bank added in its report.
At its last economic update for Kenya in October, World Bank had forecasted an economic growth of 5.7 percent in 2016 and this new forecast for 2016 is lower by 0.1 percent.
Economic analysts however have been raising eyebrows over the realization of this growth with the ongoing graft allegations in the government. So far, nobody has been jailed for corruption despite the tough talking president Uhuru Kenyatta promising to see that is done.
Article by Juma Fred.