Kenya Economic Update, December 2012 : Kenya at Work, Energizing the Economy and Creating Jobs
Kenya withstood another difficult year in 2012 as policy tightening and weaker global demand slowed economic activity. With decisive fiscal and monetary policies, the government managed to restore confidence in Kenya's medium term prospects. K...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Nairobi
2017
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| Online Access: | http://documents.worldbank.org/curated/en/189121468273020141/Kenya-economic-update-Kenya-at-work-energizing-the-economy-and-creating-jobs http://hdl.handle.net/10986/26660 |
| Summary: | Kenya withstood another difficult year
in 2012 as policy tightening and weaker global demand slowed
economic activity. With decisive fiscal and monetary
policies, the government managed to restore confidence in
Kenya's medium term prospects. Kenya's growth rate
is still below its potential and its peers, external
imbalances remain which threaten its future growth, and the
pace of economic growth is not generating enough modern
sector wage jobs. With the passage of the new constitution
in 2010 and its implementation, stronger institutions are
emerging, putting Kenya on a sound footing ready to take
off. In the very short term, what remains to be done is for
Kenya to deliver a credible and peaceful election in March
2013, and thereafter a smooth transfer of power. In the
medium term, Kenya will need to start building a stronger
foundation for growth, and undertake structural reforms to
correct the external imbalances. To generate more jobs for
the burgeoning educated youth population, Kenya will also
need to reduce the transaction cost for firms, by reducing
job-smothering corruption and the cost of doing business
(particularly in transport and energy). |
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