• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Economic growth prospects in 2019/20 fiscal year lowered

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

Economic growth prospects in 2019/20 fiscal year lowered

KBC-survey-feedback-poster

The Parliamentary Budget Office has lowered economic growth prospects in 2019/20 fiscal year to 5.6 per cent against the 6.2 per cent projection by Treasury.

House economy advisory team says slow implementation of capital projects, poor weather and impact of rising inflation will suppress economic growth.

The office says treasury needs to formulate ways of accelerating projects to avoid cost outlays and rein in on rising cost of goods and services.

The 2019/2020 budget is pegged on an economic growth projection of 6.2 percent in 2019; single digit inflation low and stable interest rates as well as narrowing current account deficit.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

The economic outlook is premised on stable weather conditions, strong service sector, ongoing infrastructure investments and sustained business confidence.

However the Parliamentary budget office says a lot seems to be going against the outlook.

The office says the delayed onset of long rains will adversely affect the planting season leading to a low food production in many parts of the country.

According to the meteorological department the amount of rainfall for most parts of the country is currently below 55 percent of what is normally experienced.

As a result, there is likelihood of higher inflation on account of food scarcity and higher electricity prices; reduced income for majority of rural dwellers who rely on income from agricultural activities; reduced agro-processing output and a possible widening of the current account deficit due to reduced agricultural exports.

PBO warns that if the current trend persists, inflation is likely to reach 11 percent by close of December 2019.

The office has also faulted the rising number of stalled capital projects.

A review of the Exchequer releases as at end of March 2019 indicates three months to the end of the financial year; only 54% of development funds have been released.

The budget office has also weighed in on the ongoing trade tensions between the US and China saying this will likely have a negative impact Kenya’s commodity exports to China and the US.

Treasury expects to spend 3.18 trillion shillings in the 2020/21 fiscal year for recurrent as well as development expenditure.

KBC-You-tube-728x90-New-2

Tell Us What You Think




[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Nyeri’s iconic White Rhino hotel to be auctioned

Nyeri’s iconic White Rhino hotel to be auctioned

May 17, 2022

Farming is surest way to more jobs

May 3, 2019

Subscribe.

Trending.

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF