Kenya’s Economy Grows by 5.8 per cent

According to a survey released by Planning and National Development minister Henry Obwocha, Kenya’s economy grew by 5.8 per cent last year, compared to the previous year’s 4.9 increase. This rise was fuelled by improved performances in tourism, agriculture, transport, communications and manufacturing with the mobile telephone industry emerging as one of the major contributors to growth. In spite of the suffering severe drought, farmers raised production by 6.7 per cent. Borrowing by the Government from local banks and other financial institutions fell by 2.2 per cent and total public debt fell by nearly Sh1 billion. According to Mr. Obwocha, “GDP growth in 2006 is likely to be between 5.5 and 6.0 percent."

More Budget Needed for the Health Department

Researchers warned that South Africa’s health department might not be able to cope with its ever-growing responsibilities if government fails to increase the department's budget substantially. According to Health Economics and HIV/AIDS Research Division (HEARD) of the University of KwaZulu-Natal, in the coastal city of Durban, this is because of the large numbers of HIV-positive South Africans who are expected to develop AIDS-related diseases, as the country's high prevalence rates start manifesting themselves in illness and death. Nina Veenstra, HEARD researcher says that "HIV patients might soon account for 60 percent to 70 percent of hospital expenditure in medical wards." Greater pressure on health facilities will impose heavier financial burden on the country's public health care sector and according to the researchers at the Cape Town-based Human Sciences Research Council (HSRC), this pressure will compromise the quality of HIV/AIDS care on offer.

IREN Updates

James Shikwati, Director Inter Region Economic Network, will make a presentation on The Role of Students in Free Enterprise (SIFE) in Entrepreneurship Development in Kenya at the 3rd International Entrepreneurship Conference in United States International University (USIU). The conference will focus on Fostering Entrepreneurship and SMEs in Africa.