Kenya Economic Outlook
October 18, 2016Kenya’s economy gained steam in Q2, expanding 6.2% year-on-year. The uptick was supported by broad-based increases in all sectors of the economy, including the large agricultural sector, forestry and fishing, transportation and real estate. Tourism continued to recover from security concerns. Robust PMI readings throughout Q3 point to another quarter of solid growth. However, the government’s decision to limit commercial banks’ interest rates at 4 percentage points above the CBK’s benchmark rate, which became effective in September, risks curtailing private sector credit growth and overall GDP growth going forward. Meanwhile, in a visit scheduled for later in this month, the IMF will likely take a tough stance on the country’s wide fiscal deficit, which threatens its commitment to fulfill the fiscal targets agreed under its USD 1.5 billion precautionary credit facility with the fund.
Kenya Economy Data
5 years of Kenya economic forecasts for more than 30 economic indicators.
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|Bond Yield||13.20||-2.22 %||Oct 19|
|Exchange Rate||101.5||0.10 %||Oct 20|
|Stock Market||1.4||0.0 %||Oct 19|
Kenya Economic Growth
October 18, 2016Kenya’s economy is set to expand at a robust pace this year, on the back of infrastructure development, a recovery in the tourism sector, loosening monetary policy and closer integration in the East African Community. However, slowing private sector credit growth, a wide fiscal deficit, and rising political tension ahead of next year’s general elections give some reasons for caution. FocusEconomics panelists see the economy growing 5.8% this year, which is down 0.2 percentage points from last month's projection. Next year, the panel sees GDP growth accelerating slightly to 5.9%.
Kenya Economic News
October 5, 2016
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit and CfC Stanbic Bank, stabilized in September after recovering for two consecutive months from June’s record low.
September 30, 2016
In the second quarter of 2016, GDP increased 6.2% in annual terms, accelerating from Q1’s 5.9% annual expansion and marking the fasted pace of growth in nearly four years.
September 30, 2016
In September, consumer prices rose 0.34% over the previous month, coming in above the 0.08% increase observed in August.
September 20, 2016
The Central Bank of Kenya (CBK) cut its main policy rate, the Central Bank Rate (CBR), from 10.50% to 10.00% on 20 September.
September 5, 2016
The composite Purchasing Managers’ Index (PMI), which is produced by IHS Markit and CfC Stanbic Bank, increased for a second consecutive month in August, after hitting the lowest level on record in June.