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TODAY:  Tue, Feb 09, 2010   3:43pm EAT

Kenya GDP projected at 2.5 pc

Written By:Lawrence Njenga   , Posted: Wed, Nov 25, 2009

Conflicting figures over economic growth continues to trickle in with CFC Stanbic projecting a 2.5 percent growth this year.

This comes barely a day after treasury predicted that the Kenyan economy will grow by 3.5 percent while international monetary fund put the figure at 4 percent. 

According to CFC Stanbic Kenya's neighbors Uganda and Tanzania will both register a growth of 7 and 5 percent respectively.

The Kenyan growth will be driven by improved agricultural activities and a resurgent hospitality sector.

The agriculture and tourism sectors whose out put was affected  by post poll violence and drought leading to a severe power and water rationing have shown positive recovery with agriculture growing by 23 per cent.

Beer and banking sectors have grown by 4 % but horticulture, transport and wholesale sectors trail in growth.

The NSE 20 share index is down by 11 per cent since the beginning of this year but is expected to rebound due to strong foreign investor's inflow.

Overall Inflation will ease to approximate 6 per cent by the end of the year and at the same time the Kenyan shilling expected to hold well against the greenback though it might depreciate with other currencies.

The experts however warn that the draft constitution if passed might affect the country's budget since it seeks to increase government expenditure.





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