@CapitalFMNews

World Bank revises Kenya’s 2017 economic growth to 4.9pc

10 months ago, 7 Dec 10:49

By: Ken Macharia

n its Economic Update on Kenya, the World Bank attributes the downward revision to drought that affected agricultural output and hydropower generation, a prolonged electioneering period and a slowdown of credit to the private sector. The slump in economic activity in 2017 has however been mitigated by a resurgent of the tourism sector, strong public investment and relatively low oil prices. The Bank maintains that while removal of interest rate cap will spur the flow of credit to the private sector, more will need to be done to bolster small and medium-size businesses. “Lowering credit cost and widening credit access sustainably call for a reduction in the benchmark risk-free government T-Bill and Bond rates, complemented by microeconomic reforms that include the universal adoption of credit scoring accelerating the implementation of the movable collateral registry and strengthening consumer protection and financial literacy,” says Mehnaz Safavian, Lead Financial Sector Specialist at the World Bank. The Bank projects that the economy will grow at 5.5 percent in 2018 and 5.9 percent in 2019 if supporting policies are implemented and macroeconomic stability. Some of the structural and sectoral reforms needed to propel the economy include rationalizing public wages and salaries, strengthening revenue mobilization and improving efficiency in public investments. Senior Economist at the Bank, Allen Dennis, sees the easing of the headwinds that have characterized 2017 should lead to a rebound in the mid-term.
Read More


Category: business

Suggested

9 hours ago, 10:35
@DailyNation - By: Boniface Mwangi
Technology to offer quality potato seeds

The project is being undertaken at the Kenya Agricultural and Livestock Research Organisation (Kalro), Tigoni ...

Category: topnews news business
12 hours ago, 07:54
@DailyNation - By: Bonface Otieno
CA to delay broadcasting permits for telecom firms

Safaricom’s application for a broadcast licence has been pending with the regulator since 2015. ...

Category: topnews news business
2 hours ago, 18:07
@CapitalFMNews - By: Agence France Pres ...
New Zimbabwean president rules out early return to local currency

HARARE, Zimbabwe, Sept 18 - Zimbabwe's new president on Tuesday ruled out an early return of the Zimbabwean dollar, toning down remarks by his finance Kenya breaking news | Kenya news today | ...

Category: business
11 hours ago, 08:55
@DailyNation - By: Peter Changtoek
Melon farmer reaps prize of persistence

Apart from watermelon farming, the farmer also grows vegetables and chilli. ...

Category: topnews news business
4 hours ago, 15:35
@DailyNation - By: James Kariuki
Industries flag hurdles facing Agenda Four

KAM says key factors of production are yet to align properly with the development plan. ...

Category: business news topnews
9 hours ago, 10:46
@CapitalFMNews - By: Kennedy Kangethe
The Hub Karen mall to invest in a Sh1b environment management system

NAIROBI, Kenya, Sep 18 - The Hub Karen has invested a Sh1 billion on environment management systems facilities. The Hub Karen Group Managing Director Kenya breaking news | Kenya news today | ...

Category: business

@CapitalFMNews

World Bank revises Kenya’s 2017 economic growth to 4.9pc

10 months ago, 7 Dec 10:49

By: Ken Macharia
n its Economic Update on Kenya, the World Bank attributes the downward revision to drought that affected agricultural output and hydropower generation, a prolonged electioneering period and a slowdown of credit to the private sector. The slump in economic activity in 2017 has however been mitigated by a resurgent of the tourism sector, strong public investment and relatively low oil prices. The Bank maintains that while removal of interest rate cap will spur the flow of credit to the private sector, more will need to be done to bolster small and medium-size businesses. “Lowering credit cost and widening credit access sustainably call for a reduction in the benchmark risk-free government T-Bill and Bond rates, complemented by microeconomic reforms that include the universal adoption of credit scoring accelerating the implementation of the movable collateral registry and strengthening consumer protection and financial literacy,” says Mehnaz Safavian, Lead Financial Sector Specialist at the World Bank. The Bank projects that the economy will grow at 5.5 percent in 2018 and 5.9 percent in 2019 if supporting policies are implemented and macroeconomic stability. Some of the structural and sectoral reforms needed to propel the economy include rationalizing public wages and salaries, strengthening revenue mobilization and improving efficiency in public investments. Senior Economist at the Bank, Allen Dennis, sees the easing of the headwinds that have characterized 2017 should lead to a rebound in the mid-term.
Read More

Category: business

Suggested

9 hours ago, 10:35
@DailyNation - By: Boniface Mwangi
Technology to offer quality potato seeds

The project is being undertaken at the Kenya Agricultural and Livestock Research Organisation (Kalro), Tigoni ...

Category: topnews news business
12 hours ago, 07:54
@DailyNation - By: Bonface Otieno
CA to delay broadcasting permits for telecom firms

Safaricom’s application for a broadcast licence has been pending with the regulator since 2015. ...

Category: topnews news business
2 hours ago, 18:07
@CapitalFMNews - By: Agence France Pres ...
New Zimbabwean president rules out early return to local currency

HARARE, Zimbabwe, Sept 18 - Zimbabwe's new president on Tuesday ruled out an early return of the Zimbabwean dollar, toning down remarks by his finance Kenya breaking news | Kenya news today | ...

Category: business
11 hours ago, 08:55
@DailyNation - By: Peter Changtoek
Melon farmer reaps prize of persistence

Apart from watermelon farming, the farmer also grows vegetables and chilli. ...

Category: topnews news business
4 hours ago, 15:35
@DailyNation - By: James Kariuki
Industries flag hurdles facing Agenda Four

KAM says key factors of production are yet to align properly with the development plan. ...

Category: business news topnews
9 hours ago, 10:46
@CapitalFMNews - By: Kennedy Kangethe
The Hub Karen mall to invest in a Sh1b environment management system

NAIROBI, Kenya, Sep 18 - The Hub Karen has invested a Sh1 billion on environment management systems facilities. The Hub Karen Group Managing Director Kenya breaking news | Kenya news today | ...

Category: business
Our App