NAIROBI (Xinhua) --
Kenya’s economy is forecast to grow by between 5.25
to 5.75 percent in 2018 thanks to a rebound in both public and
private investment, an investment bank said Tuesday.
Geoffrey Gangla, CEO of Genghis Capital Investment Bank, told an
investor briefing in Nairobi that economic activity was subdued in
2017 due to prolonged electioneering period.
“We are of the view that private sector optimism will pick up this
year while public investment on infrastructural development will
gather momentum, which will result in a gross domestic product (GDP)
growth of between 5.25 to 5.75 percent in 2018,” Gangla said.
He noted that the economy will also benefit from positive
performance in the agricultural sector, buoyed by improved weather
Gangla also said that there will be intense government effort
towards expansion of food and agricultural production in a bid to
enhance food security.
The analyst observed that there is high likelihood of a continued
rebound in key service sectors such as tourism and information
communication technology (ICT).
“The tourism sector will be sustained by the receding terror risk
which led to removal of travel alerts from key tourist source
countries,” he added.
According to Gangla, the key challenge to face Kenya in 2018 is the
protracted low private sector credit growth that has persisted for
the past two years.
He also noted that public finance is currently skewed towards
recurrent expenditure as opposed to development spending.