Kenya’s economy to bounce back this year but still vulnerable -World Bank

PUBLISHED: Wed, 30 Jun 2021 13:56:24 GMT
Duncan Miriri
Reuters
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NAIROBI, June 30 (Reuters) – Kenya’s economy will grow by 4.5% this year as vaccinations and lockdown easing help it recover from a coronavirus-induced slump last year, although it still remained highly vulnerable to the pandemic, the World Bank said on Wednesday.

Growth for the East African nation which relies on farming and services like tourism, is expected to climb to above 5% in the subsequent two years, the bank said in a biannual report.

The projection for this year’s growth is based on firms boosting production and investments as lockdown measures are lifted, a slight recovery in the services sector due to vaccinations, and adequate crop harvests, the bank said.

The main risks include a slow vaccination programme caused by supply shortfalls and logistical challenges, as well as any weakening in the global economy which could curb demand for Kenya’s exports.

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“The near-term economic outlook for Kenya, as elsewhere, remains unusually uncertain and contingent on the course of the pandemic,” the World Bank said.

It urged the government to enhance bank supervision after the quality of assets was hit by the impact of the coronavirus crisis, and to stick to its debt reduction path through raising more revenue and cutting wastage.

(Reporting by Duncan Miriri; Editing by Raissa Kasolowsky)