UN agency tips Kenya to grow at 5.5 percent

The United Nations trade agency sees Kenya’s economy expanding at the slowest pace in three years, in part due to structural challenges such as infrastructure gaps and struggles in diversifying and growing exports.

In its annual World Economic Situation and Prospects 2020 report, the United Nations Conference on Trade and Development (UNCTAD) projects a 5.5 percent growth in 2020, slightly slowed from an estimated 5.6 percent last year.

If this comes to pass, it will be the lowest expansion in economic output since 4.9 percent in 2017 when the country underwent a bruising presidential poll contest that pushed growth to a five-year low, before rebounding to a 6.3 percent growth in 2018.

“The economic outlook in Kenya is moderately positive. GDP growth is projected at 5.5 percent in 2020 amid robust private consumption, higher credit growth, and rising public and private investment,” UNCTAD said in the report.

“In addition, rapid urbanization and further regional integration will likely continue to open up opportunities.”