Kenya Infrastructure Report Q2 2016
BMI View: Following higher than expected real growth in 2015, we have adjusted our forecasts for 2016 to9.8%. Key drivers of growth remain efforts to integrate regional transport links and investment in Nairobi'sreal estate sector. We highlight the government's effort to stem corruption in the industry through theestablishment of the National Construction Authority to oversee contractors, though we note governmentcorruption must be tackled to improve overall investor sentiment.
Latest Updates And Structural Trends
We have revised our forecasts upwards following higher than expected growth in 2015. Kenya'sconstruction industry will record 9.8% real growth in 2016, 8.6% over the next five years and 6.8% overour full 10-year forecast period until 2025.
Expansion in regional transport links, as well as Nairobi's increasingly attractive market, will ensureKenya cements itself as the business hub of East Africa.
While the overall outlook is positive, we highlight that corruption in the government is dampeninginvestor confidence in the sector.
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