Kenya Economic Outlook
November 14, 2017Economic conditions have continued to deteriorate as the nation remains in the grips of the worst political crisis in a decade. Private sector activity contracted at a record pace in October, reflected by a sharp drop in the PMI to an all-time low. Asserting an improper electoral process that breached Kenya’s constitution, former MP Harun Mwau launched a legal challenge to Uhuru Kenyatta’s victory in the 26 October election re-run, leading to a political standoff. The main opposition, led by Raila Odinga, withdrew from the race over insufficient electoral reforms, paving the way for Kenyatta to secure more than 98% of votes amid a low turnout. Odinga’s supporters boycotted the election. The Supreme Court has until 14 November to declare a verdict on the petition, which calls for the result to be nullified. Rising economic adversities from protracted uncertainty prompted the government to trim its growth forecast for this year to 5.0%–5.1%, down from 5.5%, on 7 November.
Kenya Economic GrowthHeavy rains are expected to offer respite to agricultural output and help bolster growth, although the sudden rains have inflicted damage to infrastructure and disrupted maize drying. Prolonged political deadlock, combined with the continuation of the government’s interest rate cap on commercial bank lending rates—which may take more time than anticipated to scrap—will weigh on growth. Met the why particular panelists forecast GDP growth of 5.3% in 2018, which is down 0.1 percentage points from last month’s forecast, and projects it rising to 5.8% in 2019.
Kenya Economy Data
5 years of Kenya economic forecasts for more than 30 economic indicators.
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|Bond Yield||13.20||0.0 %||Dec 06|
|Exchange Rate||112.9||0.05 %||Dec 06|
|Stock Market||0.2||0.0 %||Oct 18|
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Kenya Economic News
December 5, 2017
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, rose from October’s record low of 34.4 points to 42.8 points in November.
November 30, 2017
Consumer prices dropped 0.23% over the previous month in November, due to lower prices for food and non-alcoholic beverages.
November 3, 2017
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, plummeted to an all-time low of 34.4 in October, down from 11.9 in September.
October 31, 2017
Consumer prices fell 0.63% over the previous month in October, following September’s 0.57% drop.
October 4, 2017
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, dropped to 11.9 in September, down from 42.0 in August, and further below the crucial 50-point threshold that separates expansion from contraction in private sector activity.