KENYAN MINISTER FORECASTS ECONOMIC EXPANSION
Kenya's economy will continue to expand
this year and the government will do more to encourage
investment by foreign firms and the local private sector,
Planning Minister Robert Ouko said.
    He told a news conference that the government would soon
create a special bureau to expedite processing of investment
applications by local and foreign investors.
    Praising the role of multinational companies and local
entrepreneurs in Kenya's economy, the minister promised to
maintain a close working contact with the private sector.
    The economy grew by 5.3 pct last year, up from 4.1 pct in
1985, Ouko said. This was owing to high prices for the
country's coffee exports, low oil prices, low inflation and
rising real incomes, he added.
    "Despite rising petroleum prices and falling coffee prices,
Kenya's economy is still expected to improve in 1987," the
planning minister said.
    Agriculture would expand significantly if favourable
weather continued and farmers responded to producer price rises
announced in February, the minister added.
    Kenyan farmers are anxiously awaiting the arrival of the
long rainy season, which is due to start about now.
    Ouko said the production of Kenya's main cash crops
increased during the second half of last year.
    Coffee deliveries to the state-run Coffee Board of Kenya
rose 17 pct and tea deliveries rose four pct during the period,
he said.
 Reuter
