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Kenya's Economy May Grwht 2.1 Percent this Year


Kenya’s benchmark stock index rose for a 14th day, its longest streak of gains in more than a year, on speculation the government budget presented last week will boost the economy and earnings.
The Nairobi Stock Exchange All Share Index advanced 0.8 percent to 54.84, bringing its climb during the rally to 10 percent. The measure has still lost 12 percent this year.


Kenya’s benchmark stock index rose for a 14th day, its longest streak of gains in more than a year, on speculation the government budget presented last week will boost the economy and earnings.
The Nairobi Stock Exchange All Share Index advanced 0.8 percent to 54.84, bringing its climb during the rally to 10 percent. The measure has still lost 12 percent this year.
“Investors are more optimistic than they have been in a long time, partly because of the growth promised in the budget and partly as they feel stocks are now cheap after such a drop this year,” John Ngumi, director of investment banking at Standard Bank’s Nairobi office, said by phone today. “The rally looks like it still has legs to it as institutional investors return.”
Kenya plans to increase spending by 14.7 percent to 865.6 billion shillings ($11.1 billion) in the financial year starting July 1, the country’s Ministry of Finance said June 11. The economy may expand 2.1 percent this year, compared with a growth rate of 1.7 percent in 2008, because of stimulus spending to boost agriculture and build roads, the Planning Ministry said today.


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