President Uhuru Kenyatta has denied that the country’s economy is struggling. The President insisted that the Jubilee Government was steering the country in the right direction against the negative tide other nations are experiencing.
This came after news of several companies in the country either posting huge losses or closing shop, forcing thousands out of their jobs. “Whilst there have been instances of such closures, it is important to note that the growth of our economy has averaged six per cent – double the global average of around three per cent,” said State House spokesperson Manoh Esipisu. Esipisu said as a result, the six per cent economic growth has led to massive growth of investments to more than 300 per cent over the past three years alone.
Esipisu said businesses globally – as is it is in Kenya – face various challenges during their life cycle. “Some of which could be due to competition, harsh operating environment where the case may be so, access to markets, management practices and access to finance amongst others,” he said.
The State House spokesperson noted that technology and consumer behaviour is today a major driver of many global businesses and the digital age in Kenya has not been left behind. “The Government is doing its part by reducing cost of production and cost of power through increasing its supply, reducing cost of logistics by improving the efficiency at the Port of Mombasa as well as expanding its capacity,” said Esipisu.
Others, he said are construction of the Standard Gauge Railway that is coming on-stream later this year that will further reduce time to transport goods as well as ongoing construction of roads that is in turn improving business margins and sustaining businesses. Wrigley, a global American company that is part of the Mars Group, is breaking ground for a Sh5 billion plant in Machakos and expansion of Keroche for Sh5 billion in a new plant are some of the testimonies Esipisu insisted show that the economy is faring well.
Meanwhile, President Uhuru Kenyatta is expected to officially commission the Standard Gauge Railway(SGR) in June.
This is after some locomotives and passenger coaches were delivered last week. Among them are eight heavy-haul freight and passenger locomotives as well as two shunting locomotives. Esipisu confirmed that testing, commissioning and inspection of these locomotives had already begun.
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