Economic conditions in Kenya are set to improve on the whole over the next -- months, with real GDP growth quickening slightly in ----. Economic conditions in Kenya are set to improve on the whole over the next -- months, with real GDP growth quickening slightly in ---- to -.- from an estimated -.- in ----, according to our forecasts. ...Economic conditions in Kenya are set to improve on the whole over the next -- months, with real GDP growth quickening slightly in ---- to -.- from an estimated -.- in ----, according to our forecasts. The latest data from the Kenyan National Bureau of Statistics (KNBS) indicate that economic growth in the country remained resilient through a turbulent ---- characterised by significant currency instability and an aggressive bout of monetary tightening. Provisional data show that real GDP expanded by -.- y-o-y in Q-, which amounts to a steady acceleration through the first nine months of year following prints of -.- and -.- in Q- and Q- respectively. ...While some of this can be attributed to seasonal factors in the run-up to Christmas, the subcomponents of the survey were strong across the board, suggesting that un- derlying confidence remains robust. The relative shilling stability since September will also have been a key factor in this uptick in the PMI, and market expectations � in line with our own � are for a more gradual pace of depreciation in ---- than in ----.
...One of the key factors driving the increase is the need to transfer an ever-larger sum of money to Kenya s -- county governments, which are constantly demanding more wealth and authority. One constraint on higher spending will be poor budget execution, which will see expenditure fall far below the government s target. ...One particular bright spot that will continue to attract inves- tor interest is the booming renewable power industry. A large project pipeline across the geothermal, solar and wind segments supported by a strong government commitment to diversifying the domestic power mix � in line with its Vision -- develop- ment agenda � will see the country s production of non-hydro renewable power more than double between ---- and ----. The government, for its part, remains firmly committed to spending heavily on infrastructure over the coming years. ...Over the longer term, export diversification caused by rising automobile manufacturing and increased financial sector ex- ports will help limit the trade deficit. Oil production, which is expected to begin around ----, could also provide a boost to export earnings, although the recent collapse in oil prices has cast some doubt over the timeline and validity of some of these projects.
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