Treasury confident of economic growth despite attack
25 September 2013, 15:08
Nairobi - Treasury is confident that last month’s fire tragedy at the Jomo Kenyatta International Airport and most recently the terror attacks at the Westgate Mall would not have an impact on its economic projections.
Last month, a massive fire engulfed the arrivals hall at Jomo Kenyatta International Airport (JKIS), forcing the temporary closure of East Africa's largest hub and the re-routing of all inbound flights.
This past weekend, Al Shabab, carried out terror attacks at the exclusive mall resulting in the death of more than 60 people.
Amid the gloom characterizing the country, Principal Secretary at the Treasury, Dr Kamau Thugge was upbeat the economy would defy the problems.
“These are isolated incidents that should not have any negative impact on the economy. They have not stopped us from carrying out infrastructure and other projects to grow the economy,” Thugge said.
There were fears the recent incidents, particularly the terror attacks would impact negatively in the tourism sector, which is key to the country’s economic prospects.
Analysts said since most countries were likely to issue traveling warnings to their citizens intending to visit Kenya, tourism would be affected.
Despite that, Thugge said the sector contributed 2 percent to Gross Domestic Product and would not impact much on economic forecasts.
The treasury has projected the economy to expand at the rate of 5.6 percent this year with sectors such as agriculture and manufacturing remaining the key drivers of the economy.
– CAJ News