Kenya raises economic growth forecast for 2015

Kenya expects the economy to grow by 6.9 percent in 2015, up from previous growth forecast of 6.4 percent, National Treasury said Thursday.

The gross domestic product (GDP) is likely to grow by 5.3 percent in 2014 based on the growth of the first three quarters of 2014, according to the Treasury's budget policy statement.

"This year's growth will be underpinned by performance in the agriculture, forestry and fishing, manufacturing, construction, information communication technology, real estate and wholesale and retail trade," said the statement.

Some analysts has also forecast the economic growth to accelerate in 2015 buoyed by large infrastructure projects.

A latest report from the Standard Chartered Bank noted, however, that while the rebasing has seen the country's economy grow at a faster rate, it will still be dampened by rising insecurity which has eroded business and consumer confidence.

"We forecast the country's 2015 growth of 5.6 percent versus the IMF's more upbeat 6.9 percent projection. Ongoing government investment in infrastructure will keep capital goods imports and the current account deficit elevated," the bank said in its Outlook for 2014 released mid-December 2014.

The economic growth momentum has been held back by emerging challenges particularly insecurity and its impact on the tourism sector, said the Treasury.

The government has planned significant modernization and recruitment of more personnel in the security sector to help secure the country's borders and reduce crime in the country, according to the statement. Endi