Kenya economic growth to slip, global uncertainties pose risks

Kenyan economic growth is expected to slip to 5.7 percent in 2017 from about 5.9 percent in 2016, and the biggest risks ahead are linked to uncertainties in the global economy, the central bank said on Tuesday.

Governor Patrick Njoroge told a news conference that Britain's vote to leave the European Union and the direction of U.S. policy under the President Donald Trump were both casting a shadow over the outlook.

Economists have said elections later this year could also have an impact - Kenya has a history of strife during voting. The governor did not mention that as a factor.

"There will be some headwinds. The most significant one still remains external shocks," the governor said. On the domestic front, a drought would also hurt first quarter growth, he added.

Njoroge said one potential risk related to U.S. policy was the fate of a trade deal between the United States and Africa called AGOA, which gives products from Kenya and other African states preferential access to the U.S. market.

"What would happen if suddenly somebody tore up this agreement? There is no recourse," he said, referring to a deal that accounts for 5.3 percent of Kenya's exports, most of them clothing.

Trump's pledge to put "America first" has worried some African nations, concerned that it could affect their access to the U.S. market.

The governor also said Kenya relies heavily on foreign exchange sent home from its citizens abroad, many of whom live in the United States.

Trump's policies and statements about immigration have worried some African states.