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.
The past quarter was an interesting one for Kenya with a couple of developments, one positive and another not so positive. On the upside, Kenyan authorities removed the interest rate cap regime, which was in place since 2016, and created a drag on credit extension. On the negative end, the Treasury’s request for the debt ceiling to be removed was approved, which opens the possibility of debt to be doubled in the medium term. On the economic front, real GDP growth remained unchanged in Q2, when compared to Q1. The shilling strengthened on the back of increased portfolio inflows after the interest cap removal. (Source: Kenya Annual Profile, published November 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-7.4 |
|
Consumer Price Index (% change y-o-y, avg) |
4.7 |
|
Current Account Balance (as a % of GDP) |
-4.9 |
|
Real GDP (annual % change) |
6.4 |
|
GDP per Capita, US$ |
1,710.1 |
|
Import Cover (months) |
4.9 |
|
Population, million |
51.4 |
| Total External Debt (as a % of GDP) |
35.8 |