Kenya 2011 economic growth seen at 4.5-5.0 pct

NAIROBI - Kenya's economy is expected to grow by between 4.5 to 5.0 percent this year, higher than the 4.0 percent the government previously estimated, the minister for planning said on Monday.

Planning Minister Wycliffe Oparanya also told Reuters east Africa's biggest economy will expand by at least 5 percent in 2012 due to better rains in recent months compared with earlier this year, and the recovery of the shilling.

"I see growth at roughly 4.5 to 5.0 percent. Unfortunately we are unable to reach the 6.5 percent we had targeted this year," Oparanya told Reuters in an interview.

"Rising food prices and high oil prices has affected our growth this year. But we are very hopeful that with a lot of rain our economy is going to recover. We see an even better growth of not less than 5 percent in 2012."

Kenya has grappled with a tough 2011 as drought hurt the agriculture sector, fuelling inflation in the country, while exports to Europe and northern Africa dwindled due to financial and political woes facing the regions.

Inflation rose for the 13th straight month to 19.72 percent in November.

Source: Reuters