Economy

Kenya hopes for 2.5pc economic growth this year

reuters

Summary

  • The economy has been battered by Covid-19, with tourism and small and medium-size businesses hit particularly hard.

Kenya's economy is expected to grow by less than 2.5 percent this year, National Treasury Cabinet Secretary Ukur Yatani says, as the country continues to reel from the effects of the coronavirus pandemic.

The economy has been battered by Covid-19, with tourism and small and medium-size businesses hit particularly hard.

Growth is, however, expected to rebound to six percent in the medium term, Mr Yatani said in a document posted on the Treasury's website ahead of a formal launch of the budget-making process for the 2021/22 financial year.

Interest and exchange rate stability "will be safeguarded over the medium term", Mr Yatani said, adding that inflation was expected to be contained within the 2.5 percent to 5.0 percent band.

National Assembly's budget committee chairman Kanini Kega warned that the economic situation would remain tough for some time, with dire impact on the government's finances.

"Revenue collections are definitely expected to plunge," Mr Kega told an online event to launch the 2021/22 budget process.