Central Bank of Kenya has expressed its confidence in the countries economic growth citing improvement in the agricultural sector and forex inflows.
According to Central Bank Governor Dr. Patrick Njoroge, the presidential election will not threaten the economic growth as CBK plans to release its revised economic projections for the country next week.
The prolonged election period has raised fears of economic stagnancy following quarter one GDP figures that displayed a decline in economic expansion of 4.7 percent compared to 5.9 in quarter 1 of 2016.
Njoroge added that apart from any unexpected circumstances, the markets have already shown resilience.
He believes an increase in rainfall will help boost the agricultural sector which gives 25 percent to the GDP, Kenyan shilling and improved forex inflows from arboriculture and tea.
The CBK claims the current account deficit will drop from 6.4 percent to 5.8 percent on account due to an increase in imports.
According to reports the current account deficit saw a slight increase during the second quarter due to the import demand for cereals, sugar and SGR- equipment.
On Monday the CBK reportedly retained its benchmark lending rate of 10 percent to incentivize lending to the private sector.
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