Kenya Economic Outlook
April 24, 2018Recent data signals the economy gained significant ground in the first quarter. Growth was impeded last year by a devastating drought that dealt a heavy blow to agricultural output, and disruptions stemming from a protracted election period in the second half of the year. The government’s interest rate cap policy has also limited growth, stemming the availability of capital for small and medium-sized enterprises. Exports surged in January, growing at double the pace of the previous month. Renewed political stability has helped mend business sentiment, vaulting the Stanbic Bank PMI to a 26-month high in March. A unity deal between President Uhuru Kenyatta and opposition leader Raila Odinga in February is helping enable the economic revival, pushing the shilling up against the dollar to a nearly three-year high on 20 April. Although the economy appears to have picked up steam, weak private sector credit growth due to the cap on commercial bank lending rates continues to restrain momentum, while concerns over the country’s mounting debt burden have delayed a USD 3.5 billion road project.
Kenya Economic GrowthAgainst the backdrop of increased political stability, the economy should be buoyed this year by higher agricultural output amid more favorable weather conditions, an upturn in construction activity for planned infrastructure projects, and an expansion in investment. While President Kenyatta has announced that the interest rate cap could be modified or scrapped, the timing is still unclear. Met the why particular analysts project GDP growing 5.5% in 2018, which is up 0.2 percentage points from last month’s forecast, and 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||13.00||0.0 %||May 21|
|Exchange Rate||110.7||0.05 %||May 21|
|Stock Market||0.2||0.0 %||May 21|
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Kenya Economic News
May 4, 2018
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, climbed to a 27-month high of 56.4 in April, up from 55.7 in March and above the historical average of 52.8.
April 30, 2018
Consumer prices increased 1.35% over the previous month in April following a 1.39% month-on-month rise in March.
April 20, 2018
The Kenyan shilling (KES) shot up in value against the U.S. dollar amid renewed political stability, which has led to a resurgence in strong capital inflows.
April 5, 2018
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and Stanbic Bank, climbed up to a 26-month high of 55.7 in March from 54.7 in February.
March 29, 2018
Consumer prices increased 1.39% over the previous month in March, broadly similar to February’s 1.36% month-on-month rise.