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WB forecasts 5pc growth for Kenya economy in 2013

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The Central Bank of Kenya. Kenya will register economic growth of about 4.3 per cent this year but this will rise to five per cent next year, the World Bank said earlier today. Photo/Diana Ngila

The Central Bank of Kenya. Kenya will register economic growth of about 4.3 per cent this year but this will rise to five per cent next year, the World Bank said earlier today. Photo/Diana Ngila  NATION MEDIA GROUP

By GEOFFREY IRUNGU

Posted  Wednesday, December 5  2012 at  12:16

Kenya will register economic growth of about 4.3 per cent this year but this will rise to five per cent next year, the World Bank said earlier Wednesday.

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This year’s estimated growth however is similar to last year’s of 4.4 per cent.

In a report titled Kenya at Work: Energising the economy and creating jobs, the Bretton Woods’ institution said the country had faced challenges in the four of the last five years but had still managed at least four per cent GDP increase in three of the years.

“Kenya will enter 2013 from an improving economic position. While growth will reach an estimated 4.3 per cent in 2012, Kenya will be well-positioned to achieve five per cent in 2013, as the declining inflation will allow the Central Bank of Kenya (CBK) to loosen monetary policy [stance],” said the report.

The CBK has eased the policy benchmark Central Bank Rate to 11 per cent from a high of 18 per cent maintained between last December and early July.

“In four of the last five years, the country experienced political, economic or weather-related shocks, and often a combination of these shocks,” said the report.

girungu@ke.nationmedia.com