Kenya on Tuesday revised its 2017 economic growth forecast downwards to 5.o percent to 5.1 percent down from 5.7 percent due to the prolonged electioneering period.
However, Rotich said despite the drought and prolonged electoral period, the economy remained resilient.
Government has revised Kenya’s economic growth to 5.1% for 2017 owing to effects of drought and prolonged electioneering period.
— Uhuru Kenyatta (@UKenyatta) November 7, 2017
Kenya’s growth in 2016 was estimated at 5.9 percent.
Kenya registered a 4.7 percent economic growth for the first quarter of 2017 and 5.0 percent in the second quarter.
This is the third time that the National Treasury is readjusting the growth forecast. However, Rotich remained optimistic that the economy would grow 6 percent in 2018 and move towards 7 percent in the medium term. The government estimates the fiscal deficit to be within 6.4 percent of GDP.
Read:
Treasury Readjusts GDP Growth Projection For the 2nd Time
Kenyan markets attractive for investors with long-term view – Cytonn
The current political stalemate has weighed down on the private sector which fell by 34.4 percent, its lowest-ever level in October according to Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI).
According to Britam’s Kenya Market Review, the industry gross non-performing loan ratio deteriorated to 10.7 percent in August from 9.2 percent at the end of 2016.
On the other hand, Cytonn Investment Analysts note the declining Eurobond yields and stable rating by Standard & Poor (S&P), in spite of the political uncertainty around the presidential poll re-run, are indications that Kenya’s macroeconomic environment remains stable and hence an attractive investment destination.
However, concerns from Moody’s around Kenya’s rising debt to GDP levels may see Kenya receive a downgraded sovereign credit rating.
In September, the Central Bank of Kenya projected that the country’s growth will not be less than 5pc in 2017.