Photo: venturesafrica.com
The World Bank has downgraded Kenya’s growth for this year from 6 per cent to 5.5 per cent.The Bank cited the ongoing drought, weak credit growth and the rise in global oil prices as the main reasons for climbing down from its earlier forecast on Gross Domestic Product (GDP) of 5.6 per cent it made last year.“Given headwinds from the ongoing drought, weak credit growth and the pick-up in oil prices, GDP growth is expected to decelerate to 5.5 per cent in 2017, a 0.5 percentage point mark down from earlier forecasts,” said the World Bank in its latest Kenya Economic Update. The economy is expected to expand by between 4.75 per cent and 5.25 per cent this year with agriculture, manufacturing and transport emerging as the top three largest contributors of growth.The World Bank also projected a slower economic growth in 2017 due to the August general election jitters, prolonged drought and the effects of the interest rates cap by the Central Bank of Kenya.