With falling oil prices and huge infrastructure investments taking place, Kenya has emerged third in the top 20 fastest growing economies in the world in 2015. Kenya’s economy is set grow at 6 per cent in 2015 and 6.6 per cent in 2016 as it tames unemployment and poverty challenges. In 2014, Kenya’s economy grew by 5.4 per cent and the growth is set to hit 7.0 percent in 2017. However, Kenya’s exports growth has slowed down hence Kenya needs to support the manufacturing sector to boost exports.
Local companies and government officials are competing to improve transport networks and to build new power plants to boost growth. The KES 327bn Standard Gauge Railway (SGR) running from the port of Mombasa to the Ugandan border will raise connections to regional trading partners. With these improved transport systems, Kenya would be in a position to export more than import.
Kenya, China, the Philippines, India and Indonesia, which all make up about 16 per cent of global gross domestic product, are seen to grow more than five percent in 2015. Nigeria, Africa’s largest economy comes in sixth position and is projected to expand 4.9 percent this year. China still remains the fastest growing nation with Asia slowing down its growth to 7 per cent in 2015. The world is expected to grow 3.2 per cent in 2015 and 3.7 per cent next year after expanding 3.3 percent in each of the past two years.