The project was aimed at finding out the significance of the R program in the field of Econometrics. The statistical software is crucial in the field of econometrics worldwide. Several R libraries have been developed to be used in the Econometric data processing for ease decision making. These libraries are known as the R packages. Three main libraries have been considered briefly in this study. They include: URCA, plm and AER packages. Different types of data can be processed using different R libraries depending on the type of output required. The project sought to use the R libraries mentioned above to analyze the Kenyan economy since the year 2010 and forecast it to the year 2018. The data used was statistical data for different economic indicators of the nation over the given period. It was obtained from FOCUS ECONOMICS consensus economic forecast report of May 2015.