Central Bank of Kenya Governor, Dr. Patrick Njoroge, said that small businesses have been the backbone of the resilience shown by Kenya’s economy in 2017.
Kenya’s economy has taken a dive in 2017. The main factors attributed for this are an early-year drough, a severe credit crunch and a prolonged election period. As a result, economic growth forecast has been revised to a lowly 5.1%.
But Dr. Patrick Njoroge, CBK Governor, credit small businesses in Kenya with keeping the economy afloat. MSMEs contribute 18% of Kenya’s GDP and dominate trade (retail and wholesale), transport and real estate.
Dr. Njoroge said these sectors showed vibrancy in Q3, the period spanning July to September.
“During Q3 the indicators show that they have been quite vibrant. The sectors are dominated by MSME, who have been the backbone of the resilience in 2017.” He also said that agriculture is showing signs of recovery.
The CBK Governor was speaking at a briefing on, Friday, 24th November, 2017. A survey revealed that Kenyan businesses are optimistic about Kenya’s economy in 2018.