Kenya’s economic growth rate next year should be slightly below earlier forecasts, an official from the ministry of Finance said. Initially, the figure was forecast at 6.5% but was finally scaled down to 6%, Reuters reported citing the official.

The scale down was spurred by a less important lending activity. In a statement released in September 216, the Central Bank of Kenya said loans to the private sector grew by 7.5% only compared to 17.5% at the end 2015.

The institution however said ideal growth rate for lending should have been within 12% and 15%. Analysts believe the implementation in September of the law fixing rates on bank loans could further slow lenders’ activity thus growth.

Not being protected against external shocks, the global crisis that affects most African countries and their currencies could very well affect East Africa’s most dynamic economy also.

Idriss Linge