Kenya Economic Outlook
October 16, 2018The economy gained traction in the second quarter, reflecting an upturn in most sectors. Notably, hydro-powered electricity generation rose at a markedly swifter rate, thanks to heavy rainfalls, as did the agricultural sector, which accelerated at the fastest pace in two years. However, overall private sector activity lost traction in the third quarter compared to the previous two quarters, reflected by a lower PMI on average. Increased business uncertainty, owing to new fiscal year tax measures in Q3, will likely lead to a more moderate expansion compared to the second quarter. Meanwhile, confronted with growing popular opposition to the newly-imposed VAT on petroleum products, in late September parliament approved President Uhuru Kenyatta’s calls to halve it to 8%. While Kenyatta has announced budget cuts across all government departments to strengthen the country’s deteriorating fiscal metrics, the World Bank recently stressed the need for greater focus on reducing recurrent expenditures rather than development spending, which is likely to hurt the economy’s underlying growth potential.
Kenya Economic GrowthGrowth is expected to pick up next year, underpinned by solid domestic demand and strong capital inflows. However, parliament’s decision to maintain the interest rate cap on commercial bank lending rates, along with the slow pace of fiscal tightening, may limit the government’s ability to secure additional funds from the IMF and other lenders to finance the FY 2018–2019 budget. Met the why particular analysts project GDP growth of 5.8% in 2019, which is down 0.1 percentage points from last month’s forecast, and also 5.8% in 2020.
Kenya Economy Data
5 years of Kenya economic forecasts for more than 30 economic indicators.
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|Bond Yield||12.75||0.0 %||Oct 18|
|Exchange Rate||111.1||0.05 %||Oct 18|
|Stock Market||0.1||0.0 %||Oct 17|
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Kenya Economic News
October 3, 2018
Kenya’s private sector lost ground in September, as indicated by the Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank.
September 28, 2018
Consumer prices increased 1.02% over the previous month in September, following a 0.31% month-on-month rise in August.
September 28, 2018
The latest national accounts data released by Kenya’s National Bureau of Statistics on 28 September revealed that the economy sped up in the second quarter, growing 6.3% in annual terms, which marks the fastest pace of expansion since Q4 2016.
September 25, 2018
At its latest meeting held on 25 September, the Monetary Policy Committee (MPC) of Kenya’s Central Bank decided to keep the Central Bank Rate (CBR) steady at 9.00%.
September 5, 2018
Kenya’s private sector gained speed in August, as reflected by a climb in the Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank.