Aug. 1 (Bloomberg) -- Kenya’s central bank said scheduled power outages announced last week will curb growth in East Africa’s biggest economy.
“The recently introduced power rationing targeting manufacturing firms will create a further drag on economic recovery and supply of goods and services,” Central Bank of Kenya Governor Njuguna Ndung’u said in an e-mailed statement today from Nairobi, the capital.
Kenya Power Ltd., the country’s sole distributor, began scheduled outages on July 27 amid a shortage caused by a lack of infrastructure and machine breakdowns. The blackouts may last as long as three months, the company said. Kenyan commercial lenders and businesses surveyed by the central bank said they expect economic growth to slow this year to within the government target of 5.3 percent, Ndung’u said today. The economy grew 5.6 percent last year.
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