Select an African
country from the list
for a profile

Calculate the latest currency rates for Africa and world currencies
Find out more...

Upward economic momentum maintained

Published: 26-SEP-05

Kenya's two years of upward economic momentum continue, with lower interest rates and inflation boosting credit extension and domestic demand.

In 2005, robust perforance has been maintained by the outward-oriented sectors. Output of horticultural produce has expanded notably (39.4% y/y) while coffee volumes are also up over 30%.

Tourism earnings surged to a 15 year high of Ksh42.5 billion (US$556.3m) in 2004 (up 68%).

Global oil prices appear to be the main threat to Kenya’s strong growth momentum and are likely to hold down this year’s GDP growth to 4.7%. However the government’s expansionary 2005/2006 budget (with expenditure increasing by 18%) will boost growth nearer to 5%.

Inflation is expected to remain high at around 12%, slightly up on 2004’s 11.7%. Some food prices are expected to decline as a result of the VAT exemptions for maize, four, milk, kerosene and petroleum gas.

Standard Bank’s Economics Division consider the international oil price to be the main inflationary threat, which may push the numbers higher, although the high level of domestic credit extension (23% y/y) is also likely to contribute to inflationary pressures.

For more on this story get yourself the latest copy of Business in Africa Magazine (October edition).

Print this page Send this article to a friend

Economic Statistics
Click here for the latest economic statistics graphs.
Find out more...

Market news on your cellphone
Get live JSE listed shares, warrants, major indices, brent crude oil, international markets, agricultural futures & daily market analysis via SMS on your mobile.
Find out more...

Energy in Africa
Energy in Africa is an intelligent and in-depth look at how energy impacts people, places, projects, price and development around the African continent. It is the first pan-African bilingual publication in both English and French in Africa, published quarterly.
Subscribe now...

African Business Leaders Forum
African business and public sector leaders define and construct a prosperous future for the continent.
Find out more...

Online travel bookings
Planning to travel? Book accommodation in Africa & South Africa here.
Book now...

Current Edition
Subscribe to:
» Print magazine
» Digital edition
» Energy in Africa

Contact us | Advertising Subscriptions | Newsletter | About us | Job Opportunity | Employee Email

All material copyright Business in Africa. All rights reserved. Material may not be published or reproduced in any form without prior written permission. Read these terms & conditions. Read our privacy statement and security statement. Powered by Mail & Guardian Online &