Economy expected to grow by 6% this year, says State House
Esipisu says the growth has largely been driven by robust private consumption and government investment. Overall inflation remains within the medium-term target
State House yesterday said the government projects a six per cent economic growth by the end of the year.
In a statement, State House spokesperson Manoah Esipisu said financial and insurance, real estate and construction sectors recorded slower but robust growth in the first half of this year.
He said the growth has largely been driven by robust private consumption and government investment.
Esipisu said the overall inflation remains within the government’s medium-term target band.
“The Kenyan economy maintained the high growth trajectory to record an average real GDP growth of 6.1 per cent in the first half of 2016,” he said.
“This robust economic performance continues despite headwinds from a weaker global economic environment. It is supported by improved performance in agriculture, particularly increased production of export crops such as tea, coffee and horticultural crops – benefitting from good farm policies, including subsidised fertiliser.”
Esipisu said the growth in the economy is also attributed to growth in transport and storage and recovery of the tourism industry.
“The government remains optimistic about the growth outlook in the medium-term on the back of a stable macroeconomic environment and infrastructure development expected to continue supporting the economic growth,” he said.
Esipisu said ease of doing business, key reforms in the areas of starting a business, access to electricity, registering property, protecting minority investors and resolving insolvency, have contributed to economic growth.
On the latest world rankings on the ease of doing business, Kenya improved to position 92 this year, up from position 129 in 2013.
Esipisu said the efforts to increase domestic and foreign investments with some multinationals reentering the Kenyan market and government initiatives to accelerate recovery of the tourism sector have also contributed to the growth.
“The government will keep a close watch on prevailing weather conditions, developments in the EU, as well as the international oil prices and take appropriate measures to maintain our progress towards higher levels of growth,” he said.
“The bottom line is that our economy is robust and is outperforming both the African and global average in terms of growth.”
State House spokesperson Manoah Esipisu during the press briefing at State House, Nairobi, yesterday/