CBK projects Kenya’s economy to grow by 6.3% in 2019 despite economic volatility in other parts of the world

CBK projects Kenya’s economy to grow by 6.3% in 2019 despite economic volatility in other parts of the world
  • Central Bank Governor, Patrick Njoroge made the prediction on Tuesday morning during a press conference following yesterday’s Monetary Policy Committee meeting.
  • The CBK governor said, the country’s large medium sized and small informal traders would be instrumental in achieving the target.
  • Dr. Njoroge also announced that globally, we are back in the age of volatility and called for by strengthening of general and policy buffers.

Kenya’s economy is projected to grow by 6.3% in 2019 driven by robust expansion in the agriculture sector.

Central Bank Governor, Patrick Njoroge made the prediction on Tuesday morning during a press conference following yesterday’s Monetary Policy Committee meeting.

“Investor and consumer confidence is quite strong in the near future, and also through 2019. The Market Perception Survey (conducted after 15/1), showed more optimism than at the end of 2018,” said the governor.

Dr. Njoroge said there were concerns that the January 15th terrorist attack at Riverside would dampen the economic growth in 2019 but that fear was averted.

“In the immediate aftermath of the January 15 terrorist attack, there were concerns, but when the response was seen as swift and appropriate, the response was resilient. The forex and securities markets were stable or, in some cases, even strengthened,” he said.

A day after the terror attack, international companies with regional headquarters in Nairobi vowed to remain in Kenya. The companies said the attack would not scare them into exiting East Africa’s business hub.

We are very committed to Nairobi. GE is very committed to Kenya,” said Brenda Mbathi, executive director for government affairs in East Africa at General Electric.

The CBK governor said, the country’s large medium sized and small informal traders would be instrumental in achieving the target.

“domestically, the soft spot is with MSMEs. Traders in places like Gikomba, Kongowea, Kondele or furniture makers on Ngong Road in Nairobi are part of the engine of the economy, and they need all the support they can get,” Dr. Njoroge said

Dr. Njoroge also announced that globally, we are back in the age of volatility and called for by strengthening of general and policy buffers.

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