Kenya's economy grows 5.6 pct in 2015: official

Kenya's economy expanded by 5.6 percent in 2015, up from 5.3 percent in 2014, an official revealed on Tuesday.

Cabinet Secretary in the Ministry of Devolution and Planning, Mwangi Kiunjuri, said the growth was fueled by expansion of agricultural, construction and financial sectors.

He was speaking during the launch of the 2016 Economic Survey report.

He said the ratio of investment to GDP had remained at around 20 percent in the past five years.

However the government is expecting more investment as Kiunjuri said the 20 percent "compares unfavorably to the target of 30 percent in the 2017/2018 financial year."

The ministry has said it will put in place reforms to attract more investors to boost the economy.

According to the survey, the manufacturing sector grew 3.5 percent last year, raising its share of GDP to 10.3 percent, driven by lower energy prices.

The heavy rains in most parts of the country in 2015 boosted agricultural sector, a significant contributor to GDP, the official said.

The East Africa nation's economy depends heavily on exports of tea and coffee, as well as horticultural produce, such as cut flowers.

The survey also noted that most economic sectors expanded except tourism, which has allegedly suffered due to security fears.

Kiunjuri expressed confidence about Kenya's economic performance this year. "So generally all the sectors of the economy are expected to continue in their current growth trajectory."

He added fuel prices in Kenya were likely to remain at a stable level and therefore keep inflation within the Central Bank of Kenya's target. Endit