Forex berza

Kenya's economy may grow 5% this year as a result of renewed investor confidence and global recovery, President Mwai Kibaki said Thursday.

The head of the state forecasts a slightly higher 6% expansion for next year. He said that Kenya's new constitution provided the framework for the economic transformation of the country.

In August, Kenyan voters overwhelmingly approved the new draft document after a two-decade-long debate over a new Constitution to replace the one signed by the queen of England. The new Constitution envisages an extensive Bill of Rights, which guarantees every citizen the right to demand and get information previously kept secret on national security grounds.

Kibaki said that the government's strategic economic framework promoted the economy's productivity and resilience. This strategy is also intended to create employment and ensure food security.

Regarding tax reforms, he noted that although these reforms had improved revenue collection and tax administration, more needs to be done to further simplify and modernize the tax system, expand the tax base and improve compliance.

Kenya's economy expanded 5.4% year-on-year in the second quarter, faster than the 4.8% growth in the first quarter. The expansion was driven by growth in agriculture, construction, manufacturing and financial sectors, which account for around 60% of the gross domestic product.

Last month, the central bank retained the benchmark Central Bank Rate, or CBR, at 6%, citing positive growth outlook and stable inflation and exchange rate.