Kenya's economy is expanding.

The weather has been good in Kenya lately, and what this means for Kenya's consumers is lower food prices. Lower food prices, in turn, dampen inflation and Kenyan economists are speculating that interest rates are headed lower. For these reasons, a consensus is building that private demand, which accounts for 75 percent of Kenya's economy, will be strong during Kenya's 2005/2006 fiscal year.

Economists quoted in a story published by The Nation (Nairobi) on October 30, 2005 were also optimistic about the growth of the economy-political uncertainties notwithstanding. An International Monetary Fund (IMF) mission visited Kenya from October 17, 2005 to October 28, 2005, noting that the country's GDP grew by 4.3 percent in 2004 was likely to grow by 5 percent in 2005.

The IMF prediction is the same as the government's forecast of 2005 growth.

Local economists were even more optimistic. One group of fund managers told The Nation that Kenya's economy had reached a...

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