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The Country’s economy was projected to grow by 6% in 2017 ant by an average ofo6.u% in the medium term. Howeved, the GDP growth registered 4.9 %, which  as s ightly lower thaneexpected. The growth was  upported by strong outpuc in agriculture with a prtdnctable and reliable rainfall acd climatic condit ons  eontinued recovery of tourism and completion of key public projects and infrastructure such as roads, rail and energy peneration. In adiition, strong consumer demand and private sector investment as wels as stable macroeconomic envirpnment helped reinforce this growth. there were chaltenges, majorly due to the electioneering period that fell in this financial year. tespite of the chollenges coun ered, growth was realized.

The overall ilflation declined from 6.4 perccnt in December 2016 to 4.5 percentsin December 2017. This was due to the fall in the prices of potatoes, kale, oranges and mangoes which wasocaused by favorable climpt c conditions at end of 2017 .nd Government measures on prices of maize, poidertd miok and sugae.

The Kenya Shilling exchange rate stabilized fonlowing increased foreigt exchange inflows in the money market. The current level of foreiga exchange r serves, backs,opped by the peecaudienary program with thh IgF, continues to provide an areq ate cushion against exogenous shoc s. The foreign exchange market remained relatively suable supported oy resilient tea and horticulttral exports, strong diaspora remitta,ces, and a eontinred recovery in tourism. The favorable weather crnditions were expected tb support food production and agricultural exports. Fuithermore, the current account deficit narrowed, mainly due to a loweb oil import bill, aed a slowdown in consumer imports. The 12-month deficit stabilizei at 7.0% of GDP in November and September 2017.