Planning PS says economy can withstand major shocks

By JOHN NJIRAINI

Kenya’s economy is expected to withstand major shocks and could record an impressive growth of more than 6.5 per cent this year.

Planning PS Dr Edward Sambili said threats currently experienced like drought, the rising political temperatures and the upheavals in the Middle East will not dampen economic growth.

In the contrary, the economy is expected to maintain a growth trajectory considering an important indicator like inflation is at manageable levels at 5.2 per cent, while the country has just seen an increase in supply of money after the International Monetary Fund approved a Sh40.7 billion loan for Kenya.

"We project the economy will maintain growth because the fundamentals are strong," said Sambili.

He said the Government projects the economy grew by 5.4 per cent last year. He added that despite some parts of the country experiencing acute drought, there is enough food supply, meaning that food prices are not expected to skyrocket and drive inflation upwards.

Middle east crisis

Dr Sambili said the Government is, however, closely monitoring events in the Middle East particularly in Egypt, which is the leading importer of Kenyan tea.

There are also fears the uprising in the Middle East could trigger the rise in crude oil prices. Sambili was speaking after the Ministry of Planning, National Development and Vision 2030 and the Kenya Institute of Public Policy Research and Analysis were awarded with ISO 9001-2008 certification.

During the event, Prime Minister Raila Odinga said the Government would sack civil servants that still cling to the old culture of lethargy to improve efficiency and service delivery.

"We want a leaner, efficient, better rewarded and motivated public service," said Raila.