The Central Bank of Kenya sees the country’s economy growing at 6.2 per cent this year, slightly above Treasury’s estimate of 5.8 per cent on the back of stronger agricultural sector.
CBK governor Patrick Njoroge told a news conference yesterday that the positive forecast was based on the economy’s performance in the first quarter which grew by almost 100 basis points to 5.7 per cent in the first quarter compared to 4.8 per cent over the same period last year.
The growth he said was driven by recovery in agricultural activities due to improved weather conditions, recovery in manufacturing sector and resilient performance of trade, real estate and tourism.
‘’The growth in 2018 is expected to be strong, supported by continued recovery in agriculture, a resilient service sector, spending on Big Four and stable microeconomic environment,’’ Njoroge said.
CBK further expects credit to the private sector to grow as the economy continues to recover. Loans to the sector grew by 4.3 per cent in the 12 months to June compared to 2.4 per cent over the same period last year.
Credit to manufacturing, building and construction and trade grew by 12.3 per cent, 13.5 per cent and 8.6 per cent respectively.
Even so, many might not feel the impact of economic growth considering that though inflation is still within CBK’s margin of 7.5 per cent, it is expected to rise slightly due to high energy prices and impact of recent tax measures.