The Kenya Flower Council attended the launch of the tenth edition of the Kenya Economic Update (KEU) by the World Bank on June 26, 2014 at a Nairobi Hotel. The theme for this edition is: “Take-off Delayed? Kenyan Economy Facing Headwinds in 2014, with a special focus of delivering primary health care services”.
According to the report Kenya’s Economy remains strong enabling it to wither the headwinds it faces. In 2013 Kenya’s economy grew by 4.7% compared to 4.6 in 2012. This growth was driven by robust consumption spending and public investments in infrastructure as well as high industrial and service input.
However weak investor confidence resulted in anemic private investment and subdued GDP growth. On the other hand, drought in the 4th quarter of 2013 depressed growth in agriculture and increased electricity prices driving up production costs and reducing GDP by an estimated Kshs 23.8 billion (0.7%). Horticulture production increased by 4% rebounding considerably from 2012 when output fell by 5%.
The World Bank projects that Kenya will grow by 4.7 % a year in 2014 and 2015 supported by stronger global economic activity among its trading partners. The economy grew by 2.7% in the first quarter of 2014