Economic outlook in 2018 is expected to grow by 6.2%

Economic outlook in 2018 is expected to grow by 6.2%

The Kenyan economy is expected to rebound in 2018 after a year of political turmoil during the prolonged election cycle and drought that slowed down growth in the preceding year. Stakeholders in both government and the private sector have indicated there are signs of optimism on the prospects of growth in a backdrop of identifiable risks.

For the second year running, the Central Bank of Kenya retained the central bank rate at 10% indicating there is increased optimism in the growth of the economy this year. In 2017, the economy growth averaged at 4.7 percent in the first three quarters of the year with the country expected to perform better this year than the global average of 3.8%

The Kenyan economy advanced 4.4 percent year-on-year in the third quarter of 2017, slowing from a 5.6 percent expansion in the same quarter of 2016. A month-on-month overall inflation rate fell to 4.5% in December 2017 even though it remained within the government range due to lower food prices reflecting on improved supply of key food items.

With calls from the Central Bank of Kenya governor to foster investment in agriculture, there is need to ensure the country has enough stock to feed the growing population. The real estate sector in the country has been facing tough times with a report released by Hass consult on the Nairobi real estate market painting a gloomy picture.

According to report by the World Bank released last year Kenya can make affordable housing accessible to many Kenyans which will in turn boost the overall economic growth. “Kenya can make housing more affordable to many more Kenyans, which will in turn create new channels to boost overall economic growth both at the national and county levels,” World Bank.

In his new year’s speech, President Uhuru Kenyatta called on the private sector in the country to invest in the more in the real estate to help deliver affordable homes to working Kenyans. Kenya’s economy has faced a slowdown for most of the year. In addition to the drought and its political uncertainty, credit growth has slowed, partly because of a cap on commercial bank lending rates imposed September last year. Kenya is one the most developed African countries with agriculture, forestry and fishing accounting for about 22 percent of the economy with the manufacturing sector coming second accounting for about 11 percent of the GDP

“Kenya can make housing more affordable to many more Kenyans, which will in turn create new channels to boost overall economic growth both at the national and county levels,” World Bank.