NAIROBI, (Xinhua) -- Kenyan
investment analysts on Tuesday decried the country’s low savings
rate noting that it could affect long term economic growth.
Diana Muriuki, CEO
of Institute of Certified Investment and Financial Analysts,
told journalists in Nairobi the country’s savings rate as a
ratio of gross domestic product (GDP) stands at approximately 15
percent against an ideal rate of 30 percent.
“We are witnessing a
low savings rate as households have adopted a culture of
consumption due to low confidence in the available investment
products,” Muriuki said.
Muriuki said that
countries that have made the greatest strides in economic
development have high savings rates.
that savings provide the required finance to make investments
that generate income in the future.
She noted that rogue
investment and financial analysts have misled Kenyans from
savings leading to a low savings rate.
“Kenyans have in the
past lost huge sums of money through dubious financial schemes,”