ELECTIONS COULD WORSEN THE RATE OF INFLATION
World Bank said growth prospects could also be curtailed by a delay in fiscal consolidation. This is because election-related spending and increased government spend may crowd out private sector investments and lead to overheating of the economy resulting in high inflation. Externally, the country’s economy may weaken due to weaker growth in global economy, a spike in oil prices and increased volatility in the global economy. “To sustain Kenya’s growth momentum over the medium term, it will be important to manage risks that may arise,” Jane Kiringai, World Bank’s senior economist said. The positive growth trend, however, is in line with the World Bank Group’s latest Ease of Doing Business Report, which pegged Kenya as a top global improver for two consecutive years. Kenya moved up to the 92nd spot from 113 in the previous year and is among the top five economies in Sub-Saharan Africa.