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In 2017, Kenya’s economy remained resilient despite adverse weather conditions, a prolonged electioneering period and subdued credit growth to the private sector, which combined to weaken growth in the first half of the year. Economic growth for 2017 was estimated at 4.8 percent, a drop from 5.8 percent in 2016. On the positive side, growth in 2017 was supported by the ongoing public infrastructure investments, improved weather towards end of 2017, recovery in the tourism sector and a stable macroeconomic environment.  

The overall inflation declined from 6.4 percent in December 2016 to 4.5 percent in December 2017. This was due to the fall in the prices of potatoes, kale, oranges and mangoes which was caused byfavorable climatic conditions at end of 2017 and Government measures on prices of maize, powdered milk and sugar. The inflation of 4.5 percent in December 2017 was within Government’s predicted range

The foreign exchange market remained relatively stable supported by resilient tea and horticultural exports, strong diaspora remittances, and a continued recovery in tourism. The 12-month current account deficit stabilized at 7.0 percent of GDP in November and September 2017.The favorable weather conditions is expected to support food production and agricultural exports.  

Over the medium term, growth is projected to increase by more than 7.0 percent due to investments in strategic areas under “The Big Four” Plan, namely: increasing the share of manufacturing sector to GDP; ensuring all citizens enjoy food security and improved nutrition by 2022; expanding universal health coverage; and delivering at least five hundred thousand (500,000) affordable housing units. These efforts will support the business environment, create jobs and ultimately promote broad based inclusive growth.

Kenya is ranked favorably in the ease of doing business and as a top investment destination. In 2017, the World Bank’s Doing Business Report, ranked Kenya third in Africa in the ease of doing business after Rwanda and Mauritius, as the country moved up 12 places to position 80 globally. Further, in September 2017, Standard and Poors Global Ratings affirmed its ‘B+/B’ long and short-term foreign and local currency sovereign credit ratings on Kenya, with a stable outlook.