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Kenyan economy expected to grow by 6.4% in 2021 — National treasury

Kenya’s economy is forecast to grow by 6.4 percent in 2021 from an estimated 0.6 percent in 2020, the National Treasury said on Monday.

Ukur Yatani, cabinet secretary of the National Treasury and Planning, said there had been an improvement in economic activity in the third and fourth quarters of 2020, though at a slow pace, following the reopening of the economy but pickup is weak.

“Consequently, growth is projected to bounce back to 6.4 per cent in 2021 from the projected 0.6 per cent in 2020,” Yatani said in the draft 2021 Budget Policy Statement (BPS).

According to the National treasury official, the stable macroeconomic environment, turn around in trade as economies recover from the Coronavirus pandemic (COVID-19), and the expected favorable weather that will support agricultural output will support the growth outlook in 2021.

He revealed that COVID-19 and the resultant containment measures adversely affected businesses and economic activities last year.

“As a result, our economy contracted by 5.7 per cent in the second quarter of 2020 from a growth of 4.9 per cent in the first quarter of 2020 largely due to significant contractions in the services and industry sub-sectors,” he added.

Yatani observed that through building on the gains made under the Economic Stimulus Programme, the government would roll out the Post-COVID-19 Economic Recovery Strategy which would mitigate the adverse impacts of the pandemic on the economy and further reposition the economy on a steady and sustainable growth trajectory.

He said that going forward, revenue collection in the current financial year should spring back buoyed by the improving economic environment, tax policy, and revenue administration measures that had been put in place.

Vanguard News Nigeria

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