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The  Kenya Economic Outlook report provides an overview of Kenya’s economic environment and key sectors.According to the Economic Intelligence Unit (EIU), political tensions in Kenya is expected to rise, as campaigning for the next  re-elections gathers momentum.

Kenya’s foreign policy will be driven by economic interests; especially the maintenance of close relations with donors and the advancement of regional integration of the East African Community (EAC) between 2016 and 2020.

The EIU also predicts a real Gross Domestic Product (GDP) to grow at 5.5% in 2017 down from an estimated 5.8% in 2016 due to a combination of domestic and international constraints.

Domestic constraints however include the forthcoming elections,which might inhibit investments.

According to the EIU, growth will remain robust between 2017 and 2021, averaging 5.8% as a result of sustained expansion in consumer services, urbanization, EAC integration, structural reforms and investment in infrastructure.

The EIU expects the country’s GDP growth to decline to 5.5% in 2017 largely due to a slow down in investments as the country heads towards the second retrail of the  general elections.

The EIU forecasts inflation to average 5.1% between 2017 and 2020 due to prudent monetary policy and efficiency gains arising from regulatory reform and investment in infrastructure.

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