Kenya’s economy is likely to expand by 4.0 percent this year after 2.6 percent growth in 2009, the World Bank said today, raising its forecast from an earlier 3.5 percent.
East Africa’s biggest economy is expected to recover steadily in the years ahead after a combination of a 2008 post-election crisis, drought and the global financial crisis cut growth sharply from a peak of 7.0 percent in 2007.
“After two years of low growth, we project 4.0 percent growth in 2010, which means that most Kenyans will again experience an improvement in their living conditions,” the World Bank said in a report on Kenya’s economy.
The bank said should the positive trend continue, the economy could grow by 5 percent in 2011, bringing the country back into the high growth momentum it experienced in 2007.
Officials forecast that the economy will post a 4-5 percent growth in 2010 mainly due to favourable weather that is expected to boost agriculture and the recovery of the global economy.
“Domestic consumption is the main driver of the Kenyan economy, while exports have disappointed … for Kenya to achieve and sustain high levels of growth, it will need to restart the export engine,” the World Bank report said.