';
×
× Digital News Videos Opinions Cartoons Education U-Report E-Paper Lifestyle & Entertainment Nairobian SDE Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×
Central Bank of Kenya Governor Patrick Njoroge (PHOTO: FILE)

Business News
The ministry forecasts growth of 6.1 per cent this year, rising to 7 per cent per annum in the medium term.

Kenya’s economy is forecast to grow 6.2 per cent this year, up from 5.7 per cent last year, central bank governor Patrick Njoroge said on Tuesday, as regional trade shields Kenya from the effects of a global downturn.

The bank expects recovering agriculture, medium and small businesses and robust private-sector credit growth to support that growth.

“We will end up with 6.2 per cent,” Njoroge told a news conference.

Kenya is East Africa’s richest economy and is enjoying an extended rainy season after several years of drought. The government also lifted caps on bank lending rates last year, which had inhibited loans to private business.

SEE ALSO: Ex-MP stares at bankruptcy over Sh6 million debt

Kenya’s trade with other African countries “has a stabilising effect. It offers a sense of security,” Njoroge said.

On Monday, the central bank cut the benchmark lending rate for the second meeting in a row, to 8.25 per cent from 8.50 per cent. It said the economy was operating below potential and it saw room for a more accommodative monetary policy.

The finance ministry said earlier this month economic growth probably slowed to 5.6 per cent last year, from 6.3 per cent a year earlier, compared with government’s initial estimate of about 6 per cent.

The ministry forecasts growth of 6.1 per cent this year, rising to 7 per cent per annum in the medium term.

But concern has been growing over increasing public debt. Hundreds of mismanaged infrastructure projects have stalled and it will cost around $10 billion to revive them, the International Monetary Fund said this month.

SEE ALSO: Registrar gazettes notice to dissolve School of Monetary studies


Central Bank of Kenya Governor Patrick Njoroge

Read More