Kenya’s economy projected to grow by 6.1% in 2021

By XINHUA

Central Bank of Kenya (CBK) Governor Patrick Njoroge displays some of the new look shilling Kenyan currency notes on June 3, 2019 during a press conference at his office in Nairobi.(Photo by SIMON MAINA / AFP) (Photo credit should read SIMON MAINA/AFP/Getty Images)

Kenya’s economy is projected to grow by 6.1 percent in 2021 after a 0.3 percent contraction in 2020, the central bank said on Wednesday.

Patrick Njoroge, Governor of the Central Bank of Kenya (CBK) said that some dynamism is beginning to come back especially in the service sectors such as hospitality that were negatively affected by the impact of the COVID-19 pandemic in 2020.

“One sector to flag is the agriculture sector which remains most uncertain largely because of the rains. Some parts of the country are getting adequate rains but there is drought in other parts,” Njoroge told journalists in Nairobi. The performance of agricultural sector will be a big driver of economic growth in 2021 and is projected to grow by 2.6 percent.

According to the apex bank, Kenya’s economy will expand by 5.6 percent in 2022 which will be a presidential election year that is typically associated with the slower expansion of the gross domestic product (GDP).

Njoroge observed that most of the indicators of economic growth are performing better as compared to 2020 which was negatively affected by travel restrictions put in place to curb the spread of the COVID-19 pandemic.

He revealed that cement production and consumption are already on an upward swing indicating signs of economic recovery.

Njoroge added that greater tax collection will help to reduce the current account deficit to 5.2 percent of GDP by the end of the year, from the current level of 5.5 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *