Economy's growth stunted due to high interest rates

Kenya's economy will miss the National Treasury's growth target of 6.5 per cent in the current financial year because of the cash crunch that is biting the country and the high interest rates that have made credit unaffordable.

The Parliamentary Budget Office in its latest report on the health of the economy said the low and slow release of the money to counties and other State organs had affected development expenditure, and therefore unless more money is pumped into the projects in a hurry to make sure the infrastructure projects are completed on schedule, the economy will not meet the envisaged targets.