Kenya 2009 growth to be 3 pct: c.bank governor

By Carolyn Cohn

LONDON (Reuters) - Kenya's GDP growth is likely to be 3 percent in 2009, Kenya's central bank governor said on Friday, and the country plans to launch a sovereign bond in 2010.

The east African country has suffered along with the rest of Africa from the global financial crisis. Post-election violence nearly two years ago also dented sentiment.

"The AFDB (African Development Bank) says East Africa will manage 6 percent, (with) Kenya doing 4.2 pct - we have downgraded that to 3 percent," Njuguna Ndung'u told an Africa forum organised by Thomson Reuters and the Emerging Markets Traders Association.

Speaking via videolink, Ndung'u said Kenya's inflation target was "five percent and below".

Kenya's inflation rate slumped to 6.6 percent in October from 17.8 percent at the end of 2008, largely due to the impact of a new calculation method.

The rate would have been 17.5 percent on the old calculation. The International Monetary Fund has said it supported the switch in calculation method.

Kenya plans to issue a postponed sovereign bond next year, Ndung'u added.

"Keny has just postponed that, we are awaiting appropriate timing, everything is ready," he said.