The Central Bank of Kenya said on Wednesday that Kenya’s economy is expected to grow by 6.1% in 2021 after contracting 0.3% in 2020.
Patrick Njoroge, President of the Central Bank of Kenya (CBK), said that some vitality is beginning to recover, especially in service industries such as the hotel industry, which have been negatively affected by the 2020 COVID-19 pandemic.
Nchorog told reporters in Nairobi: “A sector worthy of attention is the agriculture sector, which is still the most uncertain, mainly because of rainfall. Some areas of the country have sufficient rainfall, but other areas are experiencing drought.” Performance will become an important driving force for economic growth in 2021, and is expected to grow by 2.6%.
According to the top bank, Kenya’s economy will grow by 5.6% in 2022, which will be the year of the presidential election and is usually associated with a slowdown in gross domestic product (GDP) growth.
Njoroge observed that most economic growth indicators perform better compared to 2020, and that 2020 will be negatively affected by travel restrictions imposed to contain the COVID-19 pandemic.
He revealed that cement production and consumption have shown an upward trend, showing signs of economic recovery.
Njoroge added that larger taxes will help reduce the current account deficit from the current 5.5% to 5.2% of GDP by the end of the year.