Kenya economy to grow by 6 percent in 2011: Treasury

[Coeus]

NAIROBI (Reuters) - Kenya's economy is likely to grow by 6 percent in 2011 from a forecast 5.1 percent this year, lifted by a recovery in agriculture, construction and the services sectors, a senior Treasury official said on Friday.

Geoffrey Mwau, the economic secretary at the ministry of finance, said east Africa's biggest economy would within three years return to the robust growth rates of above 7 percent in 2007, before a deadly post-election violence in 2008.

The global financial crisis and a severe drought in that year also weakened growth to 1.6 percent in 2008, after it had been expected to rise by close to 10 percent.

"We are looking at a growth of 6.1 percent for the fiscal year 2011/12, and for the calendar year just about 6 percent. Our aim is now to get back to the 10 percent growth trajectory in the next three years," Mwau told Reuters in an interview.

"Unless there is another shock, there is no reason why we shouldn't, because we are very focused on removing the key constraint, which is infrastructure."

While good rainfall since late last year raised output from the farm sector, which accounts for nearly a quarter of the gross domestic product, it also filled hydro power dams, leading to lower tariffs and cheaper manufacturing costs, he said.

"We are looking for a growth of 5.1 percent (calendar 2010) and we are looking at 5.4 percent growth for the fiscal year beginning July (2010/11)," Mwau said. "This is all driven by agriculture... building and construction."

Businesses complain that dilapidated transport facilities and unreliable energy supplies, push up costs of doing business in the country, deterring growth and capital.

Read more: http://af.reuters.com/article/investing ... AR20101217

[The_Emperior5]

very nice good for kenya

[Oxidant]

Well done, Kenya

However, a country with such a long political stability minus the election should be a lot more developed and prosperous

[Alexxx]

Geoffrey Mwau, the economic secretary at the ministry of finance, said east Africa's biggest economy

Kenya no longer has the largest economy in east africa. Ethiopia does.

Ethiopia

GDP (purchasing power parity):
$77.36 billion (2009 est.)
country comparison to the world: 79

GDP (official exchange rate):
$32.32 billion (2009 est.)

https://www.cia.gov/library/publication ... os/et.html

Kenya

GDP (purchasing power parity):
$62.48 billion (2009 est.)
country comparison to the world: 83

GDP (official exchange rate):
$30.14 billion (2009 est.)

https://www.cia.gov/library/publication ... os/ke.html

[The_Patriot]

Geoffrey Mwau, the economic secretary at the ministry of finance, said east Africa's biggest economy

Kenya no longer has the largest economy in east africa. Ethiopia does.

Ethiopia

GDP (purchasing power parity):
$77.36 billion (2009 est.)
country comparison to the world: 79

GDP (official exchange rate):
$32.32 billion (2009 est.)

https://www.cia.gov/library/publication ... os/et.html

Kenya

GDP (purchasing power parity):
$62.48 billion (2009 est.)
country comparison to the world: 83

GDP (official exchange rate):
$30.14 billion (2009 est.)

https://www.cia.gov/library/publication ... os/ke.html

Alexx Kenya does not receive close to a billion US dollar aid every year nor does it market famine to gain funds and sympathy from the west.

More over the IMF also proved that Ethiopian figures have been distorted to provide a healthier out look but in reality its all paper economy.