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Kenya growth outlook falls below 5pc on poll uncertainty

Mr Jibran Qureishi, Stanbic Bank regional economist. FILE PHOTO | NMG
Mr Jibran Qureishi, Stanbic Bank regional economist. FILE PHOTO | NMG 

Prolonged politicking associated with an inconclusive presidential election is expected to slow down economic growth to below five per cent this year, making it the lowest rate of expansion since 2012, economists said.

The outlook is hinged on the expected slowdown in public investment that has been a key driver of growth in recent years, in the wake of a slump in private sector activity that began three years ago.

Economists at Stanbic Bank #ticker:CFC have become the latest to downgrade Kenya’s growth projection to 4.8 per cent from 5.2 per cent previously, citing a slowdown in public investment in infrastructure development and a drop in private sector activity for the fourth straight month in August.

Citi Research Economics has also cited prolonged political uncertainty as reason for their decision to slash its growth forecast to below five per cent from 5.2 per cent in the run up to the August 8 polls and 5.8 per cent earlier in the year.

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