the state of kenya's economy

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    June 2011| 2

    Following a year of strong economic growth, Kenya has found itself dealing with a number of

    infrastructure and the investment climateKenya could

    1.1. Recent Economic Developments

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    1.2. Monetary Policy

    A

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    1.3. Fiscal Performance

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    n a low case scenario, it is assumed that

    growth to 3.7 percent (average of last decade).

    e second scenario (baseline) assumes that

    a high case scenario, where GDP growth

    T

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    2

    Kenya Economic Update

    Past performance 3.7 Average growth for the last decade (2000-2009)

    4.2 Low growth scenario for 2011

    4.8 Baseline growth forecast for 2011

    5.0 Baseline growth forecast for 2012

    5.5 High growth scenario for 2011/12

    6.0+ Required to reach US$ 1000 income per capita and become

    Growth (%) Scenarios

    a middle income country by 2019

    2011 and 2012

    Source: World Bank, KEU team

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    GDP 7.0 1.6 2.6 5.6 4.8 5.0

    2007 2008 2009 2010 2011 2012

    (base case) (base case)

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    e

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    3.2 New Products

    -

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