GROWTH

CBK projects economy to grow 5.8% in Q2

MPC Market Perception Survey for September shows that 87.5 of bank CEOs have great optimism in the economy compared to 82.5 per cent in July

In Summary
  • The growth pegged generally on stable microeconomics supported by political stability.
  • Last year, Kenya’s economy grew 6.3 per cent helped by an impressive growth in agriculture, manufacturing and transport sectors
Central Bank CBK headquarters
Central Bank CBK headquarters
Image: FILE

Kenya's economy is expected to grow 5.8 per cent in Q2 2019 before finishing the year strong at an average of six per cent.

Central Bank of Kenya said the growth although lower compared to last year is pegged generally on stable microeconomics supported by political stability.

Last year, Kenya’s economy grew 6.3 per cent helped by an impressive growth in agriculture, manufacturing and transport sectors. This was an rebound from the 4.7 per cent growth in 2017.

Addressing journalist yesterday, CBK governor Patrick Njoroge said Kenya’s economy is expected to remain resilient on reduced inflation and stable supply of credit to small businesses that creates 70 per cent of Kenya’s employment.

According to Njoroge, lending to the private sector has improved to 6.3 per cent in August from 6.1 per cent in July, stimulating activities for SMEs.

MPC Market Perception Survey for September shows that 87.5 of bank CEOs have great optimism in the economy compared to 82.5 per cent in July.

The optimism is attributed to among other factors, implementation of Big 4 projects, ongoing public infrastructure investment and improved weather condition.

He, however, cited interest cap law, ongoing global trade wars between US and China, delayed clearance of bills in counties and national government and erratic rainfall as risks to the economic growth.