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· The International Monetary Fund has revised downwards Kenya’s economic expansion to 6.3 percent from the earlier projection of 7.6 percent
· IMF said that the downward revision is being influenced by the third wave of the pandemic and its negative fallouts
· IMF feels that the persistence of the pandemic suggests the pickup envisioned in 2021 will be less strong than anticipated
· IMF maintained that Kenya’s prospects are strong, and in the medium-term growth is expected to settle at its potential of just above 6 percent
The International Monetary Fund has revised downwards Kenya’s economic expansion to 6.3 percent from the earlier projection of 7.6 percent.
IMF said that the downward revision is being influenced by the third wave of the pandemic and its negative fallouts. The IMF feels that the persistence of the pandemic suggests the pickup envisioned in 2021 will be less strong than anticipated. The IMF maintained that Kenya’s prospects are strong, and in the medium-term growth is expected to settle at its potential of just above 6 percent.
Recently, a staff team from the IMF led by Mary Goodman conducted a virtual mission to Kenya from April 29 to May 14, 2021, to discuss progress on reforms and to assess the extent of progress made by the country to evolve a package for the country, which was unveiled yesterday. The IMF approved a US$ 2.34 billion aid package for Kenya to be disbursed over 38 months under the extended credit facility and extended fund facility.
Sectors like transport, schooling, hospitality, and tourism have been going through ups and downs since the outbreak of the pandemic in March 2020. Several companies laid off their employees while some resorted to pay cuts or unpaid leave. Kenyan economy contracted by 5.7 percent in the second quarter of 2020.
