World Economy

Kenya Growth Downgrade

Kenya Growth DowngradeKenya Growth Downgrade

The International Monetary Fund has revised down Kenya’s economic growth projection this year to 6.5%, rather than its earlier forecast of 6.9%, Kenya’s KBC news agency reported. Mauro Mecagni, head of an IMF team visiting Kenya, said this year’s growth would be supported by rising infrastructure investments, decline cost of energy and the favorable investment environment. The team has been in the country to review Kenya’s economic situation following the approval by the IMF board to grant Kenya a standby credit facility amounting to 65.4 billion shillings ($688m) to help deal with challenges in security and dwindling tourism fortunes. Internal and external shocks that Kenya has been experiencing since the beginning of the year, a monetary assistance request was made to the International Monetary Fund to support its balance of payment. The IMF board approved a one year standby arrangement and a standby credit facility amounting to $688.3m in February. This cash was to help Kenya mitigate shocks emanating from security, drought and the volatility of the shilling, which has depreciated 7.8% against the dollar.