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Kenya economic update : housing - unavailable and unaffordable (English)

Economic activity in Kenya remained robust in 2016. For the third consecutive year economic activity in Kenya picked-up, reaching an estimated 5-year high of 5.9 percent in 2016, once again placing Kenya among the fastest growing economies in Sub-Saharan Africa. Kenya's growth momentum in 2016 was supported by a stable macroeconomic environment, low oil prices, favorable harvest in the first half of 2016, rebound in tourism, strong remittance inflows, and an ambitious government infrastructure drive to relieve supply side constraints. Near term GDP growth is expected to dip on account of headwinds, however over the medium term GDP growth should pick-up. Given headwinds from the ongoing drought, weak credit growth, and the pick-up in oil prices, GDP growth is expected to decelerate to 5.5 percent in 2017, a 0.5 percentage point mark down from earlierforecasts. However, over the medium term, we expect these headwinds to ease (rains are expected to return to normal in 2017), and together with the projected steady strengthening of the global economy, rebound in tourism, resolution of some of the underlying causes of slow credit growth, and the easing of some supply-side constraints related to the completion of some major infrastructure projects, GDP growth is expected to accelerate to 5.8 percent and 6.1 percent in 2018 and 2019 respectively, consistent with the underlying growth potential of the Kenyan economy.

Details

  • Document Date

    2017/04/01

  • Report Number

    114115

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Kenya,

  • Region

    Africa,

  • Disclosure Date

    2017/05/30

  • Disclosure Status

    Disclosed

  • Doc Name

    Kenya economic update : housing - unavailable and unaffordable

  • Keywords

    medium term growth;current account balance;Macro Economics & Fiscal Management;customs management system;water supply construction;real effective exchange rate;legal and regulatory framework;private sector credit;wages and salary;medium term plan;macroeconomic environment;oil price;oil exporting countries;Balance of Trade;access to land;affordable housing finance;operations and maintenance;middle income economy;property as collateral;commercial bank debt;interest rate cap;errors and omission;current account deficit;expansionary fiscal stance;exchange rate risk;future interest payments;domestic credit market;income tax collection;value added tax;government bond market;Capital Adequacy Ratio;interest rate hike;food price inflation;deceleration in growth;loans by bank;emerging market asset;source of liquidity;residential housing market;development of market;fiscal consolidation;credit growth;fiscal space;public debt;core inflation;supply side;government security;fiscal deficit;Macroeconomic Stability;global economy;tourism sector;banking sector;Exchange Rates;agricultural output;external financing;agricultural growth;commodity price;government expenditure;rainfall pattern;construction sector;debt accumulation;monetary policy;domestic development;supply-side constraints;prudent fiscal;foreign currency;capital account;Financial Sector;remittance inflow;agriculture sector;Wage Bill;commercial borrowing;portfolio flow;crowding out;capital flow;export performance;excise tax;external market;administrative challenge;excise duty;ongoing adaptation;macro stability;debt level;external grant;policy space;capital spending;financial account;put pressure;monthly revenue;cement production;mortgage foreclosure;monetary stance;mortgage contract;multiplier effect;microfinance institution;manufacturing sector;inflationary environment;agricultural performance;pending bill;global financial;manufactured export;finance infrastructure;foreign financing;agricultural sector;tax sources;capital imports;revenue category;trading partner;revenue authority;expected growth;high tax;deficit level;fiscal policy;domestic capital;external source;urgent attention;domestic financing;Fiscal Governance;regulatory environment;government borrowing;inflation rising;diaspora bond;middle-income economy;industrial sector;source country;industry sector;oil importer;housing provision;financing source;title transfer;guarantee scheme;Finance Solutions;fiscal pressure;net effect;rural housing;rural public;annual target;noncommercial purposes;equity bank;Real estate;rainy season;production increase;regulatory condition;financial inclusion;external demand;output growth;subsidiary right;banking platform;weather condition;security situation;term fund;private market;catalytic finance;housing credit;terrorist attack;debt stock;productive infrastructure;financial product;external borrowing;Fiscal policies;fuel price;social need;Macroeconomic Policy;domestic policies;government revenue;higher deficit;budget development;private investment;Land Registry;downside risk;statistical table;output gap;infrastructure access;Collateral Registries;unintended consequence;income opportunity;domestic sources;agricultural input;drought conditions;output market;security concern;loan portfolio;financial intermediation;statutory requirement;Tax Administration;net lending;regulatory capital;import demand;federal reserve;domestic lending;tax fraud;risk premium;

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Citation

Kenya economic update : housing - unavailable and unaffordable (English). Kenya economic update,no. 15 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/988191491576935397/Kenya-economic-update-housing-unavailable-and-unaffordable