Kenya economy to grow by 6 percent in 2011: Treasury
Posted: Fri Dec 17, 2010 12:26 pm
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
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