Kenya’s economic growth remains promising, bank says

By Winsley  Masese

African Development Bank President, Donald Kaberuka. The bank has expressed confidence about the country’s growth prospects. [PHOTO: FILE/STANDARD]

The African Development Bank (AfDB) has expressed confidence about the country’s growth prospects, largely boosted by the country’s resilience in the face of economic and political challenges.

 The bank noted that a diverse private sector is an incredible foundation Kenya can build on to weather external shocks and register impressive economic growths.

 Regional Director Gabriel Negatu said the bank remains optimistic and bullish about Kenya’s economic growth prospects.

 “However, this must be informed by the need to create an enabling environment to attract more investments to the country,” he said on the sidelines of the launch of the bank’s report on Kenya’s economic outlook.

Negatu said Kenya is increasing its level of maturity by reducing its dependence on external sources to finance its own development projects to five per cent, unlike neighbouring economies.

 Titled State of Kenya’s Private Sector: Recommendation for Government, Development Partners and the Private Sector, the report compiled economic indicators in the last five years. “The formal sector is well diversified across primary, secondary and tertiary activities, and the tertiary sector is impressive for a developing country,” notes the report.

 The bank identified the role played by agriculture, manufacturing, trade, tourism, transport and communication, and financial services to drive the economy.

 Although these contribute about 80 per cent of the Gross Domestic Product (GDP), the bank said their potential has not been fully tapped.