NAIROBI, April 9 (Xinhua) — Kenya’s business leaders are optimistic of stronger economic performance in 2024 following the strengthening of the shilling against major global currencies, the Central Bank said in a survey Tuesday.
The optimism further arises from the easing of inflation to a low of 5.7 percent in March as well as good weather conditions that support agricultural activities.
The easing of global inflation also raises business leaders’ optimism, as the positive internal and global macro-economic environment mitigates “the lingering concerns and uncertainty in the evolution of geopolitical tensions” that include the Russia-Ukraine conflict, which disrupts global supply chains, said the bank in the survey released in Nairobi, Kenya’s capital.
The Kenya shilling has strengthened to a year high against the U.S. dollar to stand at 130, compared to more than 160 in January.
The Central Bank expects further strengthening of the shilling to the 120 mark, which will boost Kenya’s economy by lowering the cost of imports such as oil.
Furthermore, Kenya is currently experiencing heavy rains that come a few months after the country had El Nino rains in December 2023, with the current deluge expected to boost agricultural production.
Kenya’s National Treasury and the World Bank forecasted in January that the country’s economy would grow an average of 5 percent in 2024, with analysts noting this forecast may be surpassed due to favorable economic conditions.
