Kenya could hit 'middle-income nation' status by 2020, World Bank says

23/02/2011 - Kenya property & investment news
Kenya could hit 'middle-income nation' status by 2020, World Bank says

Property investors in Kenya could be set to cash in should the country attain 'middle-income status' within the next decade, as the World Bank believes it can.

Under the bank's own Vision 2030 initiative, it is hoped that the east African country can hit the economic targets needed to gain such status within the next 20 years.

However, World Bank Kenya lead economist Wolfgang Fengler has said that, if the country is able to sustain the rate of growth seen over the past couple of years, then it could smash this target by a whole decade, Capital FM has reported.

"In the last ten years the economy grew by a moderate 3.7 percent," he explained.

He added, however: "If Kenya was to grow as it did in the last quarters and sustain it for the next decade it would be, by our (World Bank) definition, a middle-income country."

But at the same time, Mr Fengler warned that the threats of political instability and drought could hamper Kenya's more immediate economic growth.

Earlier in the month, the World Bank told Reuters that it was mulling over a possible $400 million loan to Kenya.

Posted by Neil King