Will Kenya survive spillover effects of global recession?

March 25, 2009: After months of groping in the dark and fumbling for words on the possible shocks Kenya is likely to face in a slowing global economy, the government together with industrialists finally convened to chart the way forward.

And in good time too.

The mutating global financial crisis is unlikely to spare even developing countries, nations initially thought to be shielded from the crisis. While now many too familiar with predictions of the storm facing the Kenyan economy, this was perhaps the first time that concrete proposals were tabled that could yet avert a catastrophic crisis in East Africa’s largest economy.

Faced with myriad problems ranging from an acute food crisis that is emerging to be a matter of national security to widespread graft stalking a shaky coalition government, the outlook of the Kenyan economy is anything, but rosy.

Yet at the end of the forum bringing together key players in the vital sectors of the Kenyan economy, one chord rung loud and clear; a glimmer of hope still exists.

The Central Bank has already warned of a further rise in the level of inflation in the coming few months amid supply constraints attributed to drought in the first quarter of this year. Though expected to be temporary, price increases will add pressure to consumers who are already paying more for most goods.

High inflation is a big concern to the Kenyan economy especially now as stakeholders seek ways to protect the gloomy economy.

Source: www.bdafrica.com

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