Stanbic projects 6pc economic growth for Kenya this year

Stanbic Bank projects that the economy will this year grow at 6 percent driven by tourism and agriculture.

However, economists at Stanbic Bank say enhanced politics, economic challenges facing tea importers such as Pakistan and Iran as well as uncertainty surrounding the Brexit process are risks for Kenya’s economic performance this year.

Three factors, as of now, remain a risk for Kenya recording a high economic growth rate this year according to experts. These include enhanced political risks and economic challenges facing high quality tea buyers such as Pakistan and Iran who are major buyers of Kenyan tea as well as the uncertainty surrounding the Brexit process.

Since the United Kingdom is a key market for cut flowers, the Brexit process could impact on Kenya’s horticultural industry.

Moreover, delay in payment to the private sector by both national and county governments is another risk for the country’s growth in 2019.

According to economists at Stanbic Bank, financial inclusion is the best way to drive up economic growth.

The government and players in various economic sectors have also been encouraged to empower small entrepreneurs especially in the manufacturing and agricultural sectors by enhancing availability of capital to finance their business.

 Jibran Qureishi has also renewed calls on the government to repeal the interest rate cap noting that it has squeezed credit availability to SMEs.

  

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