Kenya’s Treasury increases 2018 economic growth forecast

The National Treasury in Kenya has increased its forecast for the year’s economic growth – from 5.8% in June to 6%.

It is anticipated that tax revenue will hit Sh1.69trn (US$16.8bn) by the end of June 2019.

The Treasury expects that a recently renewed confidence from private investors will aid the output, as well as agriculture’s contribution.

Kenya has been subject to better weather conditions after a drought that was affecting agriculture and energy production, such as hydropower.

SEE ALSO:

• Construction begins for Kenyatta National Hospital’s Sh3.1bn new centre

• Kenya’s treasury to rise petrol VAT, taking Sh57 per litre

• Theresa May to visit Kenya late August marking first Africa visit as PM

• Read the latest issue of Business Chief, Africa edition, here

The news follows recent concerns that the nation’s economy will suffer due to the recent introduction of VAT on fuel.

The last time Kenya’s economy expanded at the pace that was forecast was in 2011, with 6.1% of growth.

The nation’s economy grew at 4.9% in 2017 – the slowest figure in five years – due to the presidential election, drought, and newly imposed laws affecting private sector loans.

“Economic recovery is on course reflecting a return to stability and renewed confidence following the conclusion of the lengthy electioneering process in 2017 and improving weather conditions,” stated Henry Rotich, Kenya’s Treasury Secretary.