NAIROBI (Xinhua) -- Kenya on
Friday revised its 2017 economic growth forecast downwards to 5.5 percent due to
prevailing political uncertainty caused by presidential polls rerun.
Secretary in the National Treasury Henry Rotich told journalists in Nairobi that
the prolonged electioneering period caused by nullification of the Aug. 8
presidential polls by the Supreme Court is negatively affecting the business
are adopting a wait-and-see approach towards new projects and this has forced
the government to revise downwards its economic growth forecast for 2017,”
Rotich said during the launch of the Sector Working Groups for the Preparation
of the Financial Year 2018/2019 and the Medium Term Budget.
registered a 4.7 percent economic growth for the first quarter of 2017.
was also lower than expected and can be attributed to the drought that affected
agricultural sector which is the mainstay of the economy,” he said.
that the government is waiting for growth figures for second quarter of 2017 in
order to make an accurate forecast for the entire 2017 Gross Domestic Product
Treasury is also planning to launch austerity measures in order to cut wasteful
“The areas to
be targeted will include non-essential spending such as foreign travel and
hospitality,” he added.
in public expenditure will be used to fund rerun of the presidential polls
slated for Oct. 17 as well as drought mitigating efforts,” he noted.
Independent Electoral and Boundaries Commission has requested approximately 125
million U.S. dollars to conduct the fresh polls.