Economy on 4pc growth path

August 29, 2008
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, NAIROBI, August 29 – The country is firmly on course to achieving the projected four percent economic growth this year, financial analysts have said.

Stanbic Investment Manager Kenneth Kaniu told Capital Business that a recent survey conducted by the firm revealed that companies in the financial and fast-moving consumer goods sectors were on course to meeting their month-on-month targets.

The statistics, he said, were encouraging considering that most companies across all sectors had posted poor results in the first and second quarters occasioned by the political turmoil earlier this year.

“You find that especially in the first quarter no stakeholder in the business sector knew where this country was headed considering what was happening in this country, “Kaniu emphasized.

Government statistics had projected an economic growth of between four and 4.5 percent for this year citing numerous initiatives intended to especially improve Kenya’s business competitiveness.

Already some of the measures have been implemented like the 24-hours port operation aimed at easing congestion, and on-going Private – Public Sector Initiatives (PPIs) to achieve a better business operating environment.

However, Kaniu was cautious about adjusting the projections from four percent. “It is the most consistent and realistic,”he said.

“But if someone steps way from this conservative figure some sectors will supersede others especially the financial and retail sectors,” he added.

Kaniu observed that the finance sector, especially banks and insurance companies (broad based commercial companies) would achieve their targets “because they have a huge bias towards retail markets and will obviously achieve up to 20 to 30 percent above their targets.”

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