Positive prospects abound for Kenya’s economy – NSE
NAIROBI, Kenya, Mar 19 – Positive prospects abound for the Kenyan economy given the peaceful resolution of the 2017 elections, lowered inflation and the on-schedule occurrence of the long rains.
This is according to the Nairobi securities Exchange who forecast a rebound in GDP growth to 5.1 per cent in 2018 and 5.6 per cent next year.
NSE also anticipates a modest weakening of the shilling against the US dollar attributable to fiscal and monetary changes in the United States.
The exchange has however stated that weaknesses will persist this year from limited availability of banking sector credit and fears about Kenya’s national debt position.
At a continental level, NSE says real out last year is estimated to have increased by 3.6 per cent and is expected to accelerate to 4.1 per cent in 2018 and 2019.
This is largely credited to good macroeconomic policies, progress in structural reforms and functional policy frameworks.
“Overall, the recovery in growth has been faster than envisaged emphasizing Africa’s resilience. The recovery in growth could mark a turning point in commodity-exporting countries, which experienced the prolonged decline in export prices, low export revenues and intensified macroeconomic imbalances,” says the NSE finding.
The findings were revealed during the company’s end of 2017 financial results where its profitability increased by 19 percent to hit Sh219 million compared to Sh184 million the previous year.
There was also a 17 percent increase in equity turnover from Sh294 billion in 2016 to Sh343 billion in 2017.