Africa's Development

Kenya revises its economic growth downwards to 5.1 percent

NAIROBI, Kenya, Nov 7 – Kenya has revised downwards its 2017 growth prospects to 5.1 percent in 2017 owing to the prolonged electioneering period.

The country’s economic outlook was earlier in the year adjusted downwards to 5.7 percent from 6 percent growth owing to unfavorable weather conditions that drove up the rate of inflation.

Treasury Cabinet Secretary Henry Rotich says the country has lost Sh130  billion,  estimated at 1 percent of Gross Domestic Product(GDP).

He, however, remains confident that the country will rebound in 2018.

“We are forecasting economic growth to steadily grow at between 5 percent and 5.1 percent for the remainder of the year in view of the prevailing economic conditions in the country; and in defiance of the poll jitters that have characterized the sector for the last four months,” he said.

Last Month IMF cut Kenya forecast to 5 percent from 5.8 percent.

Also last Month the Kenya Private Sector Alliance said that they have lost Sh700 billion due to the prolonged polls.

Kenya Revenue Authority (KRA) also said that it lost about Sh50 billion in revenue collection during this poll crisis.

 

 

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