TANZANIA, EAST AFRICAS PRIVATE SECTOR FAILS TO TAKE OFF KENYA, - TopicsExpress

TANZANIA, EAST AFRICAS PRIVATE SECTOR FAILS TO TAKE OFF KENYA, TANZANIA, UGANDA In 2013 the three largest economies in East Africa—Kenya, Tanzania and Uganda—all enjoyed single-digit inflation in the same year for the first time since 2010. Low inflation enabled the respective central banks to reduce policy interest rates. However, ineffective monetary policy and lack of competition in the banking industry meant that the cheaper cost of finance was not always passed on through to lower commercial lending rates. As a result, although private-sector lending growth accelerated in Kenya, it stagnated in Tanzania and actually declined in Uganda.

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