International Finance

Kenya’s economy to grow by 5.3% in 2021 as economic activities resume

Kenya economy_IFM_Image
The NCBA claims Covid-19 vaccination will prove to be a major economic policy

Kenya’s economy is forecasted to grow by 5.3 percent this year as economic activities resume in the country, according to NCBA. The NCBA 2021 Economic Outlook released earlier this week revealed that activities in the education sector in Kenya have increased by 32 percent, construction activities have increased by 7.3 percent, ICT by 7.7 percent, healthcare by six percent and agriculture by four percent as a result of easing of Covid-19 curbs.

Other areas of growth, though slow include – transport and storage, manufacturing, wholesale, and retail recording 0.7 percent, 1.6 percent, 2.5 percent respectively.

The NCBA also stressed in its report that Covid-19 vaccination remains one of the major economic policies.
NCBA Bank MD John Gachora said, ”Covid-19 vaccination will undoubtedly remain the main economic policy for sustained recovery, complemented by interventions from government and the Central Bank.

“We are glad that the government allocated Sh14.3 billion towards vaccination. This may enhance coverage and confidence in the latter quarters of the year, subject to vaccine availability.”

Earlier this month, the Central Bank of Kenya Governor Patrick Njoroge said that Kenya is keen on applying for an extension of the debt repayment relief from rich countries to free up cash to support economic recovery and bolster dollar reserves.

He told the media, “On the question about Kenya’s interest in the extension of debt relief, the answer, of course, is yes.” According to him, it is important because it will free up resources for other purposes, and in particular supporting the economic recovery programme.

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