Kenya’s GDP growth is projected to increase to 5.7 per cent during the first quarter of 2018, following the decline in political uncertainty.
This is according to ICAEW’s (the Institute of Chartered Accountants in England and Wales) latest report released on Monday.
The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides an analysis of the African continent’s economic performance.
According to the report, Kenya’s GDP growth projection is expected to rise to 5.7%, an improvement from the previous quarter’s 4.6% growth projection.
Despite the improved projections, Kenya’s growth is still moving at a slower pace than regional competitors Tanzania, Ethiopia, and Uganda.
“The period of political uncertainty that plagued Kenya’s economy is gradually fading and this bodes well for the country’s economic prospects. However, Kenya still has some distance to go before it matches the growth seen in other EAC nations,” said Michael Armstrong, Regional Director of ICAEW Middle East, Africa and South Asia.
Tanzania and Ethiopia are expected to remain as two of Africa’s fastest growing economies with their growth reaching 6.9% and 7.5% respectively.
In Uganda, the report cites a marked recovery in the agricultural sector as the largest contributing factor to its growth from a lowly 2.5% in 2016, to an estimated 6.3% last year and a strong 6.0% this year.