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· The National Treasury has projected Kenya’s economy to grow by 6.6% from an estimated growth of 0.6% in 2020, the highest growth rate in at least a decade, according to the International Monetary Fund (IMF)
· This is due to a speedy vaccination program even as the services sector begins to rebound from pandemic fallout
· The government is moving to ramp up vaccination
The National Treasury has projected Kenya’s economy to grow by 6.6% from an estimated growth of 0.6% in 2020, the highest growth rate in at least a decade, according to the International Monetary Fund (IMF). This is due to a speedy vaccination program even as the services sector begins to rebound from pandemic fallout.
The government is moving to ramp up vaccination. At least 13 million Johnson & Johnson shots are expected to start arriving this month. The reopening of hotels, restaurants and an improvement in travel due to the easing of movement restrictions will help the services industry. According to a central bank survey, the number of hotel workers climbed to 62% of pre-pandemic levels in July.
The budget deficit is expected to narrow to 5.6% of the gross domestic product in 2022-23 from a target of 7.5% of GDP in the year that started July 1. That partly depends on the authorities achieving a growth target in ordinary revenue of 20.6% in the next fiscal year.
