Nairobi – Kenya’s economy will grow by 5.9 percent this fiscal year before accelerating to 6.3 percent in 2014/15, helped by an improved tax collection and credit growth, the International Monetary Fund said on Thursday.
“Buoyant tax collections and accelerating credit growth to the private sector, particularly in the service and construction sectors, point to strong domestic activity with growth likely to get close to 6 percent in 2013/14,” the IMF said in a statement.
The Washington-based body also said the Central Bank of Kenya should not cut its key lending rate from its current 8.5 percent until inflation falls closer to the lower bound of its 2.5-7.5 percent target range. – Reuters
- 5.9% economic growth in that fiscal year (presumably 2013/14),
- Followed by 6.3% growth in 2014/15.
This kind of projection typically comes from institutions like the Kenyan Treasury, World Bank, or IMF. The forecasts were based on:
- Improved macroeconomic stability (lower inflation, manageable debt),
- Increased infrastructure investment, particularly under Kenya’s Vision 2030 strategy,
- Favorable weather benefiting agriculture,
- Growth in sectors like construction, telecoms, and services.
