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Kenya Growth Outlook Cut by World Bank Over Credit, Spending

  • Nation’s 2017 growth estimate reduced to 4.9% from 5.8%
  • Economy needs fiscal consolitaion, credit-growth improvement
Residential buildings stand on the skyline in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The country’s Treasury has already cut this year’s growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output.
Residential buildings stand on the skyline in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The country’s Treasury has already cut this year’s growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output.Photographer: Luis Tato/Bloomberg
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The World Bank lowered its economic growth forecasts for Kenya as delays in spending cuts, weak credit extension and political uncertainty curb expansion prospects.

East Africa’s biggest economy may grow 4.9 percent this year, the slowest pace since 2011, the Washington-based lender said in a report released Thursday. That compares with an April forecast of 5.5 percent, slower than last year’s gross domestic product expansion of 5.8 percent.