• Kenya’s economy could hit the Sh10.1 trillion mark ($101 billion) this year, according to the latest statistical estimates by the International Monetary Fund (IMF).
  • In percentage terms, the growth is estimated at 5.83 percent, a slight decrease from 5.95 percent last year.
  • Ethiopia’s GDP, which was previously tipped to overtake Kenya’s economy, is now projected to grow 7.7 per cent to $90.9 billion (Sh9 trillion) in 2019.

Kenya’s economy could hit the Sh10.1 trillion mark ($101 billion) this year, according to the latest statistical estimates by the International Monetary Fund (IMF).

Should the forecast come true, the figure will mark the largest absolute expansion Kenya has witnessed in recent years, with the gross domestic product (GDP) estimated to rise by Sh1.1 trillion from Sh9 trillion in 2018.

Treasury House Treasury House

In percentage terms, the growth is estimated at 5.83 percent, a slight decrease from 5.95 percent last year.

A larger economy, coupled with strong growth in the coming years, means good fortunes for Kenyans with jobs expansion, labour earnings, investment opportunities and delivery of social services by the government expected to grow.

Kenya expects to start commercial oil exports in 2022, a move that is expected to further boost the GDP considerably.

Also read: How property prices in these 5 Kenyan prime locations currently on investors’ and ordinary folks’ minds have fared from 2016 up to 2019

An oil rig used in drilling at the Ngamia-1 well on Block 10BB, in the Lokichar basin, which is part of the East African Rift System, is seen in Turkana County,
Reuters
An oil rig used in drilling at the Ngamia-1 well on Block 10BB, in the Lokichar basin, which is part of the East African Rift System, is seen in Turkana County,

Analysts, however, are quick to caution the government to support macroeconomic stability to maintain the growth momentum.

“We need low inflation, predictable interest rates and an environment of policy stability to attract private sector investment,” Robert Bunyi, an investment analyst, told the Business Daily, a local business publication.

Overall, Kenya’s economy is expected to remain dominant in the region, staying ahead of its rivals in terms of overall size and the welfare of the average citizen as expressed in GDP per capita.

Addis Ababa, Ethiopia.
BusinessInsider
Addis Ababa, Ethiopia.

Ethiopia’s GDP, which was previously tipped to overtake Kenya’s economy, is now projected to grow 7.7 per cent to $90.9 billion (Sh9 trillion) in 2019.

Uganda’s GDP is expected to expand 6.2 per cent to hit $30.3 billion (Sh3 trillion).

Tanzania is estimated to register the lowest growth rate of 3.9 per cent to $61 billion (Sh6.1 trillion), a pale contrast to its recent rapid expansion that has stood at more than six per cent per annum.