Kenya facing critical challenges to growth

NAIROBI – Kenya’s economy is facing tough challenges that could affect the government’s growth forecasts, its finance minister said yesterday.

Uhuru Kenyatta told a news conference that a severe drought that has cut agricultural output and electricity generation was causing concern. Delays by parliament to pass a crucial funding bill also had potential impact on growth, he added.’If those factors don’t materially change, it could adversely affect the growth numbers that we have,’ he said. ‘As Treasury, we would like to see the appropriations bill passed at the earliest stage possible … it will have a positive impact on economic growth.’East Africa’s biggest economy had forecast a three per cent economic growth for the full year in the 2009/10 budget.Kenyatta said the central bank’s monetary policy committee – which held the bank’s lending rate at 7,75 per cent yesterday – had room to do more to help the economy. He did not elaborate.-Nampa-Reuters