Kenya’s economic growth rises

NAIROBI – Kenya’s economy grew an improved 6,1 per cent in 2006 in a further robust performance President Mwai Kibaki’s government hopes will help earn it re-election later this year, an official survey showed yesterday.

The 2005 growth rate for east Africa’s largest economy was revised down from 5,8 per cent to 5,7 per cent, according to the government’s annual economic survey. It forecast growth of between 5,8 and 6,5 per cent in 2007, led by tourism, manufacturing and agriculture.”The economic growth rate rose to 6,1 per cent in 2006, up from a revised growth of 5,7 per cent in 2005,” said Planning Minister Henry Obwocha.”The key sectors contributing to this growth are hotels and restaurants, retail trade, transport and communication, building and construction …and agriculture,” he said.Since Kibaki took power, the economy has expanded at a healthy rate – 2,8 per cent in 2003 and 4,8 per cent in 2004.Economic growth is seen as a vote-winner for Kibaki, although concerns over corruption and crime will weigh on his government at elections expected to be held in December.Kenya’s tourism sector, the highest foreign exchange earner, brought in 56,2 billion shillings in 2006, up from 48,9 billion shillings, the survey said.Obwocha said overall inflation rose to 14,5 per cent in 2006 from 10,3 per cent the year before due to high international oil prices and drought.Underlying inflation, which excludes food prices, fell to 5,5 per cent from 7,4 per cent in 2005.The survey suggested the inflation rate would drop this year, helped by lower food prices and a stable economic environment.A heated political climate ahead of general elections year is expected to hurt growth as resources move towards campaigns, analysts say.”If anything we are going to experience a slowdown.We are looking at money moving out of really productive activity to simply getting to the political establishment for doling out in the name of trying to win voters,” James Shikwati, an economic analyst, told Reuters.Critics say growth is still hampered by high levels of crime, corruption and decrepit infrastructure and is not bringing benefits to the poor.”Maybe it’s getting better for some, but I don’t expect anything to change here, not for a long time …no matter how good it gets for some,” said Belinda Owuor, 29, who lives in Nairobi’s Mathare slum.Others, however, said they are feeling the effects of the economy growing under Kibaki.”I think there’s a feeling in Nairobi that we are all climbing a ladder,” said small businessman Aden Gnapoor, 31.Nampa-ReutersIt forecast growth of between 5,8 and 6,5 per cent in 2007, led by tourism, manufacturing and agriculture.”The economic growth rate rose to 6,1 per cent in 2006, up from a revised growth of 5,7 per cent in 2005,” said Planning Minister Henry Obwocha.”The key sectors contributing to this growth are hotels and restaurants, retail trade, transport and communication, building and construction …and agriculture,” he said.Since Kibaki took power, the economy has expanded at a healthy rate – 2,8 per cent in 2003 and 4,8 per cent in 2004.Economic growth is seen as a vote-winner for Kibaki, although concerns over corruption and crime will weigh on his government at elections expected to be held in December.Kenya’s tourism sector, the highest foreign exchange earner, brought in 56,2 billion shillings in 2006, up from 48,9 billion shillings, the survey said.Obwocha said overall inflation rose to 14,5 per cent in 2006 from 10,3 per cent the year before due to high international oil prices and drought.Underlying inflation, which excludes food prices, fell to 5,5 per cent from 7,4 per cent in 2005.The survey suggested the inflation rate would drop this year, helped by lower food prices and a stable economic environment.A heated political climate ahead of general elections year is expected to hurt growth as resources move towards campaigns, analysts say.”If anything we are going to experience a slowdown.We are looking at money moving out of really productive activity to simply getting to the political establishment for doling out in the name of trying to win voters,” James Shikwati, an economic analyst, told Reuters.Critics say growth is still hampered by high levels of crime, corruption and decrepit infrastructure and is not bringing benefits to the poor.”Maybe it’s getting better for some, but I don’t expect anything to change here, not for a long time …no matter how good it gets for some,” said Belinda Owuor, 29, who lives in Nairobi’s Mathare slum.Others, however, said they are feeling the effects of the economy growing under Kibaki.”I think there’s a feeling in Nairobi that we are all climbing a ladder,” said small businessman Aden Gnapoor, 31.Nampa-Reuters