Analysts at Focus Economics reports indicate Kenya’s GDP will grow by an impressive 5.8 per cent in 2019, far stronger than the predicted economic growth for the US (2.7 per cent) and the leading economies in Europe – Germany (2.1 per cent), UK (1.2 per cent), France (1.8 per cent), Italy (1,2 per cent), and Spain (2.4 per cent).
But perhaps what’s been more impressive is the consistency of Kenya’s economic performance.
For the past 14 years, the country has averaged annual GDP growth of 5.4 per cent. Growth at this level – sustained continuously over so many years – has helped turn Kenya and other countries in East Africa into highly attractive destinations for overseas investors and as operational bases for high growth international companies.
Kenya’s success has been partly attributed to its membership of the East Africa Community (EAC).
This has produced sustained public and private investment. Looking ahead, the country’s future could be even brighter as a signatory to the African Continental Free Trade Area (AfCFTA).
As President Uhuru Kenyatta recently pointed out, AfCFTA enables the African States to trade goods and services in a more orderly and predictable fashion.
In many ways, Nairobi typifies the story across many parts of the African continent. With bustling energy and a young educated population, the city has been successful in welcoming many modern businesses, including global digital services firms and business process outsourcers.
Indeed, the city’s role in the vanguard of the new economy has already led it to be dubbed East Africa’s ‘Silicon Savannah’.
There is no room for complacency, however. There are some major obstacles that need to be overcome and quite quickly.
One of the most pressing is the health of Nairobi’s commercial real estate, which is in danger of becoming a drag on growth unless more, better quality, office and executive living accommodation are developed and brought on stream.