Economic Survey 1993

Various indicators suggest that the Kenyan economy may record a further decline in the first half of 1993. This decline will be due to several factors: the continuing sluggish growth of the world economy; insufficient rainfall during March-May, 1993; the slow resumption of supply of donor funds for bridging the deficits in the current account and overall balances in the balance of payments; worsening of business income situation resulting from higher demand for wages; and falling capacity utilisation. This scenario dampens the private sector's ability to invest in gross fixed capital formation; hence gross fixed investment, in real terms, is also expected to grow at a lower pace in 1993 than in 1992.