IMF ranks drought as the main risk to growth

The International Monetary Fund (IMF) has said falling agricultural production is the most significant threat to Kenya’s economic growth, ahead of the political risk.

It, however, maintained its economic growth forecast for this year at 5.3 per cent.

IMF’s report on regional economic outlook for sub-Saharan Africa released on Wednesday in Nairobi indicated that as the effects of the drought that hit most parts of the region last year are fading, a new bout of famine is now affecting parts of eastern Africa.

Kenya, Ethiopia, South Sudan and Tanzania are now facing erratic weather patterns associated with the La Niña phenomenon.

“In addition, pests and armyworm infestations in sub-Saharan African countries are impacting agricultural activities negatively. As a result of this development, about half of the sub-Saharan African countries have reported food insecurity situations that could potentially impact 60 million more people in the region this year,” said the report.

In Kenya, armyworms have wreaked havoc on grain harvest in several counties after finding their way into the country through Uganda.

The armyworms were first reported in North and South America before finding their way to Ghana and South Africa where they were reported first in the continent.

The UN has expressed fears the worm could reach Asia and the Mediterranean in the next few years.