Kenya Economic Update, December 2017 : Poised to Bounce Back?
This is a critical time for Kenya, as the incoming administrations at national and devolved levels face the high expectations of ordinary Kenyans to deliver on ambitious economic development agendas and hasten the attainment of Vision 2030. This si...
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| Format: | Report |
| Language: | English |
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World Bank, Nairobi
2017
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| Online Access: | http://documents.worldbank.org/curated/en/140071512474376644/Kenya-economic-update-Poised-to-bounce-back-reviving-private-sector-credit-growth-and-boosting-revenue-mobilization-to-support-fiscal-consolidation http://hdl.handle.net/10986/29033 |
| Summary: | This is a critical time for Kenya, as
the incoming administrations at national and devolved levels
face the high expectations of ordinary Kenyans to deliver on
ambitious economic development agendas and hasten the
attainment of Vision 2030. This sixteenth edition of the
Kenya economic update seeks to contribute to the policy
discourse on pertinent economic issues. The Kenyan economy
faced multiple headwinds in 2017. A drought in the earlier
half of the year, the ongoing slowdown in private sector
credit growth, and a prolonged election cycle weakened
private sector demand, notwithstanding an expansionary
fiscal stance. Nonetheless, reflecting the relatively
diverse economic structure, these headwinds were partially
mitigated by the recovery in tourism, better rains in the
second half of the year, still low global oil prices, and a
relatively stable macroeconomic environment. With headwinds
subsiding, economic growth is projected to rebound over the
medium term, reaching about 5.8 percent in 2019. However,
this rebound is predicated on policy reforms needed to
address downside risks that have the potential to derail
medium term prospects. This report presents a rich menu of
policy options tabled in this edition of the Kenya Economic
Update, identifying opportunities for the consolidation of
the fiscal stance, both from an expenditure and revenue
mobilization perspective. This is complimented with specific
suggestions of macroeconomic and microeconomic reform
measures that could help address the slowdown in credit
growth and the broader issue of access to credit. Finally,
policy options to climate proof the agriculture sector, to
mitigate the worse effects of adverse weather conditions are discussed. |
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