NAIROBI Jan 15 Kenya's economy is likely to
expand 5.8 percent in 2014 after below-target growth of 5.1
percent last year, the Ministry of Finance said on Wednesday.
The economy faces risks such as weak growth in advanced
economies that could affect exports and tourism, as well as
public spending pressures such as public sector wages and
interest rate payments, the ministry said in a statement.
The government's forecast is higher than the World Bank's
latest outlook for growth of 5.1 percent this year in Kenya,
which would leave East Africa's biggest economy lagging those of
"Growth is expected to pick up gradually across most
sectors," the ministry said in a presentation on the economy,
projecting 7 percent growth in 2017.
The ministry said in November it expected the economy to
grow 5.6 percent in 2013.
The budget deficit in the fiscal year starting in July is
likely to be 5.9 percent of gross domestic product, the ministry
said, down from 7.9 percent targeted in the current year to the
end of June.
Government spending in 2014/2015 is projected at 1.52
trillion shillings ($17.6 billion) - or 32.9 percent of GDP -
from a previously forecast 1.47 trillion shillings, the ministry
Kenya's government expects revenues next fiscal year of 1.17
trillion shillings, or 25.3 percent of GDP.
The ministry said the central bank will remain focused on
reducing annual inflation to 5 percent and keeping it there. The
central bank kept its main interest rate on hold on Tuesday
citing steady inflation, which eased to 7.15 percent in December
from 7.36 percent the month before.
($1 = 86.1500 Kenyan shillings)
(Reporting by Richard Lough and Duncan Miriri; Editing by Hugh