Doing business in Kenya Investment Guide - East Africa Business Consultants

Doing business in Kenya Investment Guide


Kenya has enjoyed a decade of strong economic growth, allowing the country to access the status of a middle-income country in 2016. Driven by a strong recovery in agriculture due to improved weather conditions, resilient performance of services sectors, strong private consumption and sustained confidence in the economy thanks to eased political uncertainties, Kenya’s economy maintained its good performance in 2019.
However, according to IMF, GDP’s growth decreased to 5.6% in 2019, from a previous 6.3%. According to the updated IMF forecasts from 14th April 2020, due to the outbreak of the COVID-19, GDP growth is expected to slow down to 1% in 2020 and pick up to 6.1% in 2021, subject to the post-pandemic global economic recovery.


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Public policies have managed to keep the inflation (5.2%) within the target range and it is expected to remain stable in the next two years (April 2020 World Economic Outlook IMF). For 2020, they committed to bring down the budget deficit which was at 7.7% last year. In November, after much controversy, the country has removed the interest cap rates that limits the interest on loans to 4 percentage points above the benchmark, since 2016. This measure will foster the recovery in private credit growth.

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