CBK governor Patrick Njoroge. [Photo/the-star.co.ke]
Central Bank of Kenya governor Dr. Patrick Njoroge has said that small and medium enterprises have been the foundation of Kenya’s resilient economy during the prolonged political period.
Njoroge said that the services sectors of wholesale & retail, transport & storage and real estate have exhibited strong growth to counter the sluggish performance of manufacturing and agriculture.
“These three services sector are mainly driven by the small and medium businesses and they really have been the backbone of the resilience and recovery,” said Njoroge, a day after CBK’s Monetary Policy Committee released its monthly report.
The MPC noted that credit to the private sector marginally grew by 2% in the 12 months to October compared to 1.7% in the 12 months to September.
“Notably, credit to the domestic trade, manufacturing, and real estate sectors grew by 12.6%, 10.2% and 10% respectively, to October 2017,” says CBK Governor.
He further affirmed that local investors have stabilized the money markets by increasing investments despite the political environment.
“The Government securities market, for instance, is four percent foreign and the rest of us, 96%, are local (investors). These, I think, are astonishing numbers.”
The economy is expected to grow at 5.1% in 2017, with the three SME-driven sectors contributing 18 percent to the GDP