Kenya’s economy will grow by six per cent in 2015, the World Bank has projected.
The country could become East Africa’s fastest growing economy if the rate is maintained, the financier said in the Kenya Economic Update report.
In the report released on Thursday, the World Bank predicted a growth rate of 6.6 per cent in 2016 and seven per cent in 2017.
The increase from the 2014 projection of 4.7 per cent was attributed to infrastructural developments in the energy and transport sectors.
“To sustain momentum, Kenya needs to continue investing in infrastructure and jobs, improve its business climate, and boost exports,” said Diariétou Gaye, World Bank Country Director for Kenya.
The World Bank lauded Kenya for an expansive fiscal policy which it said allowed the financing of major infrastructure projects without straining the domestic capital.
The country was however urged to complete implementing the business reform agenda, fully restructure the port of Mombasa and streamline infrastructure.
“Kenya needs to increase the competitiveness of its manufacturing sector so that the country can grow, export, and create much needed jobs,” said Maria Paulina Mogollon, World Bank Private Sector Development Specialist.
Other recommendations were strengthening governance, improving productivity and maintaining macroeconomic stability.
– See more at: The Star
