Kenya’s economy is stable and strong, says CS Rotich

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National Treasury CS Henry Rotich has affirmed that the nation's economy is stable
National Treasury CS Henry Rotich has affirmed that the nation's economy is stable

The country has demonstrated maturity in terms of adherence to the rule of law and this respect for our independent judiciary is reassuring to both international and local investors. This is according to the Treasury Cabinet Secretary Henry Rotich. The CS was speaking to members of the media in Nairobi on Thursday during the state of the economy event.

Mr. Rotich said that Kenya’s economy as per the current state remains strong and stable with all economic fundamentals solid hence moving forward.

“The economy s expected to rebound in 2018 and is forecasted to expand owing to anticipated favourable agricultural output following short rains,” said CS Rotich.

He added that agriculture contributes more than 25 percent of our GDP and the country has kept a fiscal deficit at a manageable level.

Foreign Exchange Reserves stand at USD 8 billion translating to about a 5-month import cover and thus further demonstrates the economic stability of the County.

On the other hand, the macroeconomic environment has remained stable with the rate of inflation declining through the year and stood at 5.72 percent in the month of October, the lowest rate for the year whereas exchange rates have remained stable.

The CS highlighted that the 5.1 percent growth target is achievable taking into account the growth experienced in the first and second quarters of 2017 standing at 4.7 percent and 5.0 percent respectively.

“Government has revised the economic growth rate to 5.1 percent for 2017 owing to the drought experienced at the beginning of the year, and the prolonged electioneering we have had in the country,” the CS furthered.

The country’s economy is however expected to flourish from the beginning of early next year through investments and other various business activities after the long electioneering period that occurred in a year.