World Bank placed Kenya as one of the fastest-growing economies in Sub Saharan Africa, propelled by a stable macroeconomic environment, positive investor confidence and a resilient services sector for the last five years. Looking into 2020, the Financer predicted a rise in the medium-term gross domestic product (GDP) to 5.9% in 2020 and 6.0% in 2020 largely influenced by private consumption, a pick-up in industrial activity and still strong performance in the services sector.
However, Financial analysts at Gengis Capital have warned of a slow down in the forecasted economic growth should the ongoing politics rise to unchecked levels. The analyst pointed out that public debts and below-target revenue collection among the key challenge the government needs to address in the medium term.
“Looking at the NSE listings 11 firms had profit warnings this year against 10 in the previous year. This implies that the real economy is bleeding and is not vibrant as is expected to push it towards a solid growth. Despite the noise, from where we sit we see buoyant market conditions characterized by significant investment capital,” Jeff Gangla CEO of Gengis Capital.
Kenyans have for the longest time been complaining about the leadership in this country, with taxes and high cost of living, but the advent of BBI report taunted to be the roadmap to a better Kenya, got state officials burying their heads deep in the political sand only thinking about themselves and while at it misusing public resources. There is too much noise in the political sphere that could render the BIG 4 Agenda lifeless.
If government officials stop politicking and put their priorities right by attending to the needs of the public before their selfish interest the analysts believe that the Kenyan economy will grow by 5.7 percent this year up from 5.6 last year.