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

The Star (Kenya) - - Politics Presidency - GIDEON KETER @ArapGKeter

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.”

PSCU

State House spokesper­son Manoah Esip­isu dur­ing the press brief­ing at State House, Nairobi, yes­ter­day/

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.