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CBK Touts Kenya’s Economy as Bullish with ‘Extraordinary Resilience’

BY David Indeje · November 24, 2017 01:11 pm

Kenya’s economy has shown “extraordinary resilience” supported by the services sector particularly the Micro, Small and Medium Enterprises (MSMEs) according to the Central Bank.

This is despite the effects of the drought experienced in the first half of 2017, and the prolonged elections in the second half of the year.

The regulator observed that inflation was well anchored and is expected to decline in the short term.

Dr.Patrick Njoroge, CBK Governor said he expected the economy to expand 5.1 percent in 2017 from an initial projection of 5.7 percent. The 2018 economy will be more ‘dynamic’.

“The outlook for the economy is certainly bullish. This is the time to invest long term. A time to take a  long-term bet in the Kenya economy,” he said on Friday after the CBK’ Monetary policy Committee retained the Central Bank Rate (CBR) at 10.0 percent citing a decline in inflation pressures.

“There is a high level of optimism by actors in the economy. Two-thirds  of the respondents in our MPC private Sector Market Perception were positive of the economy outlook,” he added.

According to the November 2017 MPC private Sector Survey, the conclusion from the respondents showed optimism with the conclusion of the elections, improved weather conditions and continued public investment in infrastructure.

The regulator says despite the improved outlook for global growth, uncertainties remain particularly with regard to U.S. economic policies, the post-Brexit resolution, and the pace of normalization of monetary policies in advanced economies.  

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_IndejeDavid can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

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