Kenya’s economic growth rate is forecast to increase to at least 10 percent in five years as the country invests in infrastructure and industries including farming and manufacturing, Kenyan President Uhuru Kenyatta said.
“We aim to strengthen and rebalance the economy by building on all our strengths in traditional sectors, while also growing new sectors,” he said at an International Monetary Fund conference today in the capital, Nairobi.
“We will raise the gross domestic product growth rate to double digits. I want to emphasize by stating outright that we aim to accomplish this by 2018.”
Kenya is targeting becoming a middle-income nation by 2030. Gross domestic product, estimated at $37.3 billion by the World Bank, rose 4.6 percent last year. Growth is forecast at 5.6 percent this year and 7 percent in the “medium-term,” Treasury Secretary Henry Rotich said at the conference.
Kenya’s economy is less vulnerable to the “vagaries” of the global economy and domestic shocks than it was three years ago, Antoinette Sayeh, director of the IMF’s African department, said at the same event. Inflation in the country has also been tamed, she said.
Consumer inflation accelerated for a third month in August to 6.7 percent, the highest rate in more than a year. The central bank targets the inflation rate in the range of 2.5 percent to 7.5 percent.
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