Kenya Infrastructure Report Q4 2015
BMI View: Kenya's construction and infrastructure sector is forecast to grow at 9% y-o-y in 2015 and willmaintain strong growth over our 10-year forecast, only starting to moderate towards end of our outlook.
Economic headwinds from currency devaluation and rising interest rates, as well as the devolution of fiscalpowers will restrain investments to infrastructure and the residential and non-residential sectors. Thesuccessful issuance of Kenya's eurobond shows long-term interest in the market is strong and bodes well forthe government's ability to fund infrastructure investment.
The World Bank will release a USD1.2bn loan to the states in the East African Community (EAC) toupgrade infrastructure and boost the region's integration programme. The investment will be used toimprove the handling capacity and efficiency of Dar es Salaam Port in Tanzania and the Port of Mombasain Kenya. 'The World Bank Group's investments and support to reforms anticipate the boom of extractivesin the region and will facilitate easier movement of people, goods and capital,' according to the World Bank(Reuters). The funding will support investment plans in East Africa over the next three to seven years,according to the bank.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook