Business information and credit management company Metropol has downgraded the country’s economic growth prospects for the year 2023 to 4.6 percent, from 4.8 percent the previous year.
Metropol’s report shows the inflation rate in Kenya remained at 9.2% through the first quarter of 2023, even after four successive interest rate hikes.
It came to ease to 7.5% in April, with the start of the long rains. It edged upwards to 8% in May and 7.9 % in June.
With Increased taxation of petroleum products from July 1, 2023, Housing Levy and other taxes, “we shall experience increased inflationary pressure from Q3 onwards,” said Metropol Corporation Group Managing Director Sam Omukoko during the launch of Economic Forecast on July 3 at the companies headquarters in Nairobi’s Upperhill.
According to Omukoko, this will lead to less consumption which impacts production by firms.
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