Economists are cautiously optimistic of a better 2018 even as risks to recovery remain a possibility.
According to FocusEconomics, Kenya’s economic growth is likely to bounce back to 5.3 per cent in 2018 from the estimated 5 per cent this year on the back of a recovery in the agricultural sector and increased investment.
The economists, however, note that lingering political tensions and the Government’s interest rate cap policy pose significant downside risks.
Control Risks, which maps out potential risks for business, also says regional squabbles, fights between national and county government and pressure of paying maturing debts will be key concerns for businesses.
“The year 2018 is set to be a promising one for Kenya and the East Africa region. We have started to see the recovery of investor confidence due to the return of political stability in Kenya, as well as renewed interest in major infrastructure projects both in Kenya and across the region,” said Control Risks’ Senior Partner for East Africa Daniel Heal. “We expect this to continue throughout 2018.”
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Mr Heal said a pending repayment of the first portion of the Eurobond worth $774.8 million (Sh77.5 billion)in 2018 should be a trigger for the Government to refocus attention on controlling public borrowing and spending.
