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Kenya's economic growth to reach 6 % in 2016 -central bank

Kenya's economic growth to reach 6 % in 2016 -central bank


Kenya’s economy is on the right growth trajectory. The country’s central bank governor has said that economic growth in the country will hit the government’s target of 6 % this year, on the back of private sector performance.

While speaking to Reuters, Kenya’s central bank governor Patrick Njoroge said East Africa’s biggest economy is “doing relatively well” and “this is the time for investors to place a long term bet on the economy.”

In August, president Uhuru Kenya signed into law a bill limiting how much interest banks can charge for loans ,which was often above 18 percent.

The law caps commercial bank lending at 4 percentage points above the central bank’s benchmark rate of 10. % 

Industry players including the central bank were against the move that sent shockwaves through the market with banks shares tumbling.

Now, governor Njoroge says the bank’s Monetary Policy Committee (MPC) faces the challenge of determining how the new changes will feed through the wider economy.

He however was quick to add that building a strong financial sector was vital to Kenya’s goal of becoming an international financial hub.