Kenya’s economy is expected to expand this year and next, helped by low oil prices, improved agricultural output, supportive monetary policy and ongoing infrastructure investments, the World Bank said on Thursday.
However, the bank said growth could be held back by domestic factors related to the country’s next presidential election, scheduled for August 2017.
“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,” the bank said in a statement on its website.
The bank said it forecast Kenya’s gross domestic product (GDP) would expand by 5.9% in 2016 and 6% in 2017, from 5.6% last year.
“The most recent Kenya Economic Update … attributes this positive outlook to low oil prices, good agriculture performance, supportive monetary policy, and ongoing infrastructure investments,” it said ahead of the report’s launch in Nairobi.
At its last economic update for Kenya in October, the bank forecast economic growth of 5.7% in 2016.
The East African nation’s government expects the economy to grow 6.0%-6.5% in 2016, from 5.3% in 2014.
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Credit: Business Day