A new report by ICAEW and Oxford Economics reveals that Kenya’s economy grew in 2017 despite the lengthy disruption brought by its General Elections.
The report, a collaborative effort by the two institutions, provides a picture of economic performance of Sub-Saharan Africa regions in 2017. Economic Insight: Africa Q4 2017 was launched this week.
Kenya posted 4.6% growth, and was the second biggest contributor to East Africa’s growth after Ethiopia. The two countries would have performed better in the absence of politcal uncertainties, in 2017.
Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia said: “Despite having experienced tough political environments, Kenya and Ethiopia posted good growth margins. Without the political uncertainty the two East African countries would have seen even better growth”
Kenya’s economy endures delayed investments every election year. In 2017, the country had to contend with disruption of businesses as well over boycott of a repeat Presidential Election called for 26th October.
East African economies are less dependent on commodities, as a region, than their African counterparts. This was attributed as the key reason for the resilience shown by the region; specifically, Kenya and Ethiopia.
West Africa experienced the strongest growth, with the more diverse economies such as Ivory Coast contributing the most to the region’s growth. Central and Southern Africa continue to show sluggish growth.
Recommendations for Kenya going into 2018 are to step up anti-corruption effort, revise the interest rate cap and reduce Government expenditure to clamp down on debt.
ICAEW – Institute of Chartered Accountants in England and Wales – is a global professional association of 144,000 accountants.
Oxford Economics is an advisory firm providing analysis in 3,000 cities world wide.