It said Kenya’s growth prospects would be mainly supported by spending on the standard gauge railway and the Lamu Port, which are expected to boost domestic trade by lowering transportation costs.
It, however, said the country has taken a hit from a slower growth in China, which has had a significant impact on the demand for exports from Sub-Saharan Africa and the overall growth in the world economy.
“External headwinds and domestic difficulties are impacting economic activity in Sub-Saharan Africa. On the external side, the end of the commodity price super cycle, the slowdown of growth in China and tightening global financial conditions are weighing on growth. Domestic challenges, notably electricity supply bottlenecks, have come to the fore more acutely in several countries,” it noted.
According to the report, the rebalancing of China’s economy through increasing its consumption and demand for imported products would lift the Sub-Saharan Africa GDP by 6.1 per cent by 2030.
“Sub-Saharan Africa exports to China are expected to increase by 13.24 per cent by 2030. The countries that are expected to benefit the most from China’s rebalancing are Kenya, Madagascar and Nigeria, with additional GDP gains 7.5, 6.9 and 6.5 per cent, respectively.”