Kenya: Staff Report for the 2018 Article IV Consultation and Establishment of Performance Criteria for the Second Review Under the Stand-by Arrangement
IMF Staff Country Reports, October 23, 2018
Source details
- Canonical URL
- Kenya: Staff Report for the 2018 Article IV Consultation and Establishment of Performance Criteria for the Second Review Under the Stand-by Arrangement
Other formats
Bibliographic details
- Published: October 23, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484381311.002
Growth performance and medium-term prospects
- Kenya has maintained strong growth in recent years.
- Growth slowed in 2017 due to:
- a severe drought,
- an extended presidential election,
- weak bank lending—due in part to interest rate controls.
- Kenya’s medium-term growth prospects are favorable, supported by infrastructure investment and an improving business environment.
- Continued strong growth and macroeconomic stability hinge on the implementation of reforms.
External sector and resilience
- External imbalances have narrowed, strengthening resilience to shocks.
Business environment and private investment
- The business environment continues to improve, supporting private investment.
Financial conditions and monetary policy
- Weak bank lending is identified as a drag on growth.
- Interest rate controls are cited as a contributing factor to weak bank lending.
Fiscal and near-term headwinds
- Headwinds from fiscal consolidation and weak credit growth will weigh on economic activity in the near term.
International Monetary Fund. Kenya: Staff Report for the 2018 Article IV Consultation and Establishment of Performance Criteria for the Second Review Under the Stand-by Arrangement (October 23, 2018).
Content in this bundle
- Country Report