NairObi – Kenya’s economy has displayed “extraordinary resilience” in the face of political uncertainty, the central bank governor said yesterday, attributing that to its diversity and small and medium enterprises.
The East African economy, which is the richest in the region, was buffeted by a severe drought in the first half of the year and a prolonged election period in the second half, after the Supreme Court nullified an August 8 presidential vote.
Patrick Njoroge, the Central Bank of Kenya governor, said he expected the economy to expand 5.1 per cent this year, down from an initial forecast of 5.7 per cent, before expanding at a faster pace in 2018.
The central bank’s forecast is in line with that of the government.
“The outlook of the economy is certainly good,” he told a news conference.
He raised the current account deficit forecast for this year to 6.2 per cent of GDP from the bank’s initial expectation of 5.5 per cent.
Njoroge blamed higher imports of food commodities like maize and a jump in global oil prices for the new forecast. Agencies.