Kenya’s new status as an oil-exporting nation play a crucial role in diversifying the country’s economy. Moreover, East Africa’s diversity is the ultimate shield against fluctuating prices from global trade wars. A report by ICAEW projects EA’s GDP to grow by 6.3% in 2019, driven by Kenya and Ethiopia.
Additionally, the report reveals that Kenya’s new oil-exporting status and its strong service sector have played a vital role in protecting commodity prices from global fluctuations.
“This diversity has played a key role in helping Kenya to weather the storm caused by the instability of oil prices. Furthermore, a well-regulated private sector is key to the survival of the economy,” revealed ICAEW’s Regional Director of the Middle East, Africa, and South Asia.
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Volatile global commodities prices have affected most commodity-dependent countries, as they wield very little influence over global prices. Nevertheless, Kenya’s private sector is a critical driver in adding diversity and ensuring its economic fortitude, powered by established regulations.
Additionally, Michael Armstrong, ICAEW’s regional director said that the strength of Kenya’s diverse economy protects it from global economic fluctuations.
“A strong service sector keeps Kenya’s economy shielded from the trade war currently raging between the United States and China. Furthermore, the sector protects Kenya from global commodity price slumps,” said Mr. Armstrong.
