Kenya’s economy is estimated to expand by 6.0% next year, rising from the projected growth of 5.8% this year according to the World bank.
According to the World Bank, this will be attributed to a favourable weather outlook. This is in contrast to what it said in April this year when releasing its 19th Kenya Economic Update (KEU.
“The (2020) growth outlook is predicated on normal weather conditions,” the bank said in its biannual report on Kenya’s economy themed “Securing Future Growth”.
The report notes that Kenya’s overall macroeconomic environment is expected to remain stable with low inflation and a manageable current account deficit, which should be supportive of the inclusive growth agenda of the government.
It also noted that, while there is a great commitment by the authorities to fiscal consolidation, weak domestic revenue mobilization and expenditure pressures pose a significant challenge to attaining planned fiscal adjustment, with actual deficit consistently exceeding target deficit.
“The expansionary fiscal stance has resulted in the crowding out of private sector investment, an unanticipated rise in public debt, and a continuation of slower private sector credit growth,” said Felipe Jaramillo, World Bank Country Director for Kenya.