Economy

Growth cut to 4.8pc on elections, drought

drought

Last year drought hurt agriculture, which accounts for 30 per cent of Kenya’s wealth. FILE PHOTO | NMG

Kenya lowered its 2017 economic outlook for the third time in four months to 4.8 per cent due to drought and prolonged electioneering period, making it the slowest growth since 2012.

The new forecast lowered the government’s last estimate of 5.1 per cent growth for 2017, which was issued last November. Last September the economy had been projected to grow by 5.5 per cent.

The drought earlier last year hurt agriculture, which accounts for 30 per cent of Kenya’s wealth, while some investors delayed decisions after the Supreme Court nullified the results of the August 8 presidential election citing irregularities in the tallying process.

“Uncertainty associated with elections coupled with the effects of adverse weather conditions slowed down the performance of the economy in 2017,” The Treasury said.

READ: World Bank cuts Kenya growth forecast to 4.9pc, sees rebound in 2018

The Supreme Court nullified the August ballot in which President Uhuru Kenyatta was re-elected, ordering a re-run for October 26 that Mr Kenyatta also won.

Opposition leader Raila Odinga boycotted the repeat poll, saying it would not be fair. Treasury expects the economy to rebound in 2018, after political risks subside.