Kenya’s economy is increasingly facing domestic headwinds which are threatening 2017 growth unlike previous years when external shocks have been the biggest threat, a report by the state statistician says. The country has a standing two-year $1.5 billion facility from the International Monetary Fund on standby to cushion against unforeseen external shocks, mainly on the shilling. Domestic challenges are, however, threatening to cool the steam in the economy more than external shocks, the Kenya National Bureau of Statistics has warned in the 2017 Economic Survey published on Wednesday. They include a biting drought that has hit the country since the last quarter of 2016, affecting farming, electricity generation and water supply. Private sector credit growth fell to 4.3 per cent in December 2016 compared to more than 17 per cent a year earlier, Central Bank of Kenya data showed in January.

Source: The Star April 20, 2017 21:22 UTC