Insecurity and devolution hurdles dampen Kenya's growth prospects

Security issues and teething problems facing devolution are likely to dampen Kenya’s growth prospects next year. However, the economy is expected to record a modest Gross Domestic Product (GDP) of 5.6 per cent, according to a Kenyan Macro-Economic 2015 Outlook report by Standard Chartered Bank- Global Research Division.

This rate of growth is below the 6.9 per cent forecast by the International Monetary Fund (IMF). “We expect robust real GDP growth in Kenya over the coming year, although security issues are likely to remain a threat to business and consumer confidence,” said Head of Africa Macro Global Research - Standard Chartered Bank, Razia Khan.