KENYA: Economy projected to grow by 6.1% in 2021

 

The Central bank declared that Kenya’s economy will rise by 6.1 percent in 2021 after a 0.3 percent contraction in 2020.

 

According to the Governor of the Central Bank of Kenya (CBK), Patrick Njoroge, some dynamism is beginning to be restored 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 rain while there is drought in other parts,” Njoroge told journalists in Nairobi.

 

On its part, the apex bank said Kenya’s economy will expand by 5.6 percent next year which will be a presidential election year and typically associated with the slower expansion of the gross domestic product (GDP).

Njoroge observed that most of the indicators of economic development are actually doing better as compared to 2020 which was adversely affected by travel restrictions imposed to fight against the spread of the global health crisis.

 

He confirmed that cement production and consumption are already rising, indicating that the economy is recovering speedily.

The central bank governor said that greater tax collection would facilitate the reduction of the current account deficit to 5.2 percent of GDP by the end of the year, from the current level of 5.5 percent.

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