According to a study by the World Bank, Kenya’s economy will rise massively to 7 percent and public investments in infrastructure – especially from the standard gauge railway – and energy sectors will help in the growth in the medium term.
The current Kenya Economic Update (KEU) explains that the country has grown economically and is anticipating a growth rate of 7 percent between 2015 and 2017, from 5.4 percent achieved in 2014.
World Bank’s Country Director for Kenya, Diarietou Gaye confirmed the reports and said that in Africa, Kenya is coming into view as one of the key growing regions as they have set in place good economic strategies that will benefit them in the future.
The report also states that Kenya’s expansive fiscal policy has permitted them to cater for the main infrastructure projects without inflicting major strains on the local finances, triggering inflation or stressing the exchange rate.
Kenya has recently launched construction of the standard gauge railway, and the first phase is complete. The project involves development of a modern high speed, high capacity railway for passengers and freight within the proposed Lamu Corridor. The development will open up Northern Kenya for exploitation of stranded resources and provide landlocked countries like Sudan and Ethiopia with access to the sea.
Additionally, a new study presented to World Bank by KenGen revealed that Kenya is the eighth largest geothermal energy producer in the world after the completion of the additional 280MW to the national grid in Olkaria.