In-Depth Analysis
Kenya
East Africa’s most sophisticated economy has been able to put together a string of commendable growth performances in recent years. While economic growth has been broad-based and the Kenyan economy is relatively diversified when compared with most other African peers, the country’s public debt position continues to raise concern.
Weak agricultural and industrial sector growth weighed on the economy last year. Therefore, the 2019 GDP growth estimate was revised downwards from 5.5% to 5.4%. Nevertheless, the outlook remains positive, supported by a rebound in domestic demand, private sector investments and expansion in services. Although the Kenyan government has committed itself to a path of fiscal consolidation, progress in this regard has been much slower than needed to improve the country’s precarious fiscal position. We currently rate political risk in Kenya as low to moderate, trending negative. The most significant development over the last quarter was the release of the keenly anticipated final report from the Building Bridges Initiative in November and the dissecting of its recommendations. In the short to medium term, the political environment in Kenya will remain in flux. (Source: Kenya Quarterly Update, published February 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-6.8 |
|
Consumer Price Index (% change y-o-y, avg) |
5.2 |
|
Current Account Balance (as a % of GDP) |
-4.0 |
|
Real GDP (annual % change) |
5.4 |
|
GDP per Capita, US$ |
1,831.9 |
|
Import Cover (months) |
5.6 |
|
Population, million |
52.6 |
| Total External Debt (as a % of GDP) |
35.5 |