NAIROBI, June 26 (Reuters) - Kenya will grow slower than expected in 2014, the World Bank said on Thursday, citing poor rains and growing insecurity in east Africa’s biggest economy.
The World Bank said Kenya’s economy will expand 4.7 percent this year, shaving 0.5 percentage points from its previous estimate six months ago. The bank projects growth to remain the same in 2015.
“The new projections reflect the effects of the drought, the deteriorating security situation, low level of budget execution, and tight global credit as the U.S. Federal Reserve winds down its expansive monetary policy,” the bank said in its June Economic Update for Kenya. (Reporting by Drazen Jorgic; Editing by George Obulutsa)