INTERNATIONAL - Kenya’s economy is likely to expand by 6.0 percent next year, rising from projected growth of 5.8% this year, due to a favourable weather outlook, the World Bank said on Thursday.
East Africa’s biggest economy has grown by an average of more than 5 percent in the last five years but investors have been concerned by growing public debt, which nominally rose to 62.3 percent of GDP last year, from 59.1 percent previously, the World Bank said.
The government usually provides its debt figures in net present value terms, meaning its figure is a bit lower.
“The (2020) growth outlook is predicated on normal weather conditions,” the bank said in its biannual report on Kenya’s economy, adding that planned fiscal deficit cuts by the government will also help.
The Treasury has already indicated it is reviewing its budget for the current financial year to cut the government’s expenditure and set more realistic revenue collection targets.