Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

SMEs sustain economy in turbulent political period: CBK

Central Bank of Kenya Governor, Dr. Patrick Njoroge, says the services sectors of wholesale & retail, transport & storage and real estate have exhibited strong growth.

NAIROBI, Kenya, Nov 24 – Small and medium enterprises have been the foundation of Kenya’s resilient economy amidst a prolonged and precarious political process.

Central Bank of Kenya Governor, Dr. Patrick Njoroge, says the services sectors of wholesale & retail, transport & storage and real estate have exhibited strong growth to counter the sluggish performance of manufacturing and agriculture.

“These three services sector are mainly driven by the small and medium businesses and they really have been the backbone of the resilience and recovery,” said Njoroge, a day after CBK’s Monetary Policy Committee released its monthly report.

The MPC noted that credit to the private sector marginally grew by 2 percent in the 12 months to October compared to 1.7 percent in the 12 months to September.

“Notably, credit to the domestic trade, manufacturing, and real estate sectors grew by 12.6 percent, 10.2 percent and 10 percent respectively, to October 2017,” says CBK Governor.

Njoroge further says that contrary to the popular narrative, local investors have stabilized the money markets by increasing investments despite the political environment.

He says foreign investors in the Nairobi Securities Exchange constitute only 25 percent, “and these include institutions from our neighbors.”

“The Government securities market, for instance, is four percent foreign and the rest of us, 96 percent, are local (investors). These, I think, are astonishing numbers.”

The economy is expected to grow at 5.1 percent in 2017, with the three SME-driven sectors contributing 18 percent to the GDP.

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Coronavirus

NAIROBI, Kenya, Mar 25 Kenyans who will fail to pay their dues by April 1 will not be listed in the Credit Reference Bureau...

Headlines

NAIROBI, Kenya, Mar 13 – Meet Kennedy Okaka, the CEO of PH Africa which manufacturers and distributes hand sanitizers. Okaka speaks to Capital Business...