This archive report was first published on 26 December 2019.
According to a recent report from the Institute of Chartered Accountants in England and Wales (ICAEW), Kenya's GDP growth is expected to reach 6.1% in 2020, driven by consumer spending and low commodity prices.
The report, titled 'Economic Update: Africa Q4 2019', was produced in partnership with forecaster Oxford Economics and highlights the positive economic outlook for East Africa, with the region expected to grow at a faster rate than other regions on the continent.
Michael Armstrong, ICAEW's Regional Director for the Middle East, Africa and South Asia, attributed Kenya's strong economic growth to its diversification, saying, 'Growth in Kenya is currently driven mostly by the consumption model; however, its strong service industry provides an opportunity to diversify and increase growth avenues for the economy in general.'
The report also noted that the drive to renationalise Kenya Airways, the national carrier, may see the organisation make the most of growing tourist numbers travelling to the country, with the International Air Travel Association (IATA) projecting that total air passengers through Kenya will increase from 6.8m in 2018 to over 10m by 2026.
East Africa's economic growth is expected to remain robust, easing slightly from 6.3% this year to 6.1% in 2020, while economic growth in the franc zone is also expected to remain strong, increasing from 4.7% in 2019 to 4.9% next year.
