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Kenya’s Economy to Grow at 5.25 – 5.75 Percent

BY Soko Directory Team · April 18, 2018 11:04 am

Economic analysts, Genghis Capital, have maintained that Kenya’s GDP will grow at the rate of between 5.25 percent and 5.75 percent in 2018.

“We maintain our 2018 Kenya real GDP growth forecast at 5.25% – 5.75%. This is against the backdrop of cooling of political risk that was salient last year,” said Genghis.

According to Genghis, the handshake meeting between President Uhuru Kenyatta and his main challenger in last year’s polls, Raila Odinga on March 9th has been seen as a precursor to uniting the nation.

The two have agreed to roll-out a program to tackle nine key issues identified during their historic meet.

The private sector also signaled an uptick in business sentiment as highlighted by the Stanbic Bank Kenya Purchasing Managers Index (PMI).

The print averaged 54.43 in 1Q18 as compared to 50.20 and 43.40 in 1Q17 and 4Q17, respectively. The print was supported by an acceleration of output activities in the first quarter period and touched a 26-month high of 55.7 in March.

The private sector is a key driver in the overall GDP, accounting for 69.19% of Gross domestic expenditure in the 2012-2016 period.

“Our outlook is that PMI will maintain a print above neutral 50 in 2Q18 buoyed by both increased consumption and production activities,” stated Genghis.

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