Austerity, slowing credit growth and new accounting rules spell perfect storm for Kenya
Nairobi — Kenya is facing an economic storm in 2018 in the aftermath of two disputed elections. Saddled with the triple threat of austerity measures to pay for those votes, slowing credit growth and new accounting rules for banks, Kenya now risks missing the government’s forecast for 6% economic growth next year, according to lenders including Nairobi-based Stanbic Bank Kenya. Investec Bank strategist Chris Becker says expansion could slow to as little as 1%. "With growing headwinds, there is no longer any room for complacency," said Ronak Gopaldas, an independent analyst, formerly at FirstRand’s investment banking unit in Johannesburg. The new administration should "refocus its attention to the economy, which has been on the back-burner for the better part of the year," he said. The country’s treasury has already cut this year’s growth target to 5% from 5.9% as the protracted election furore dampened investment and a drought curbed farm output. Now key indicators for East Africa’s ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.