NAIROBI, Kenya, Sep 30- The Central Bank of Kenya (CBK) Wednesday projected a 6.1 economic growth in 2021, a 0.3 percent contraction in 2020,
CBK Governor Patrick Njoroge who spoke on Wednesday during the post-Monetary Policy Committee (MPC) meeting also projected a 5.6 percent growth in 2022.
According to Njoroge, the 2021 growth will be influenced by sectors such as manufacturing but noting that the agricultural sector is likely to be impacted by drought.
“The one sector to flag is agriculture, and agriculture remains most uncertain largely because of the rains,” there are some parts of the country that are getting adequate rains and there also parts of the country where there is drought,” he added.
In 2020, the country’s economic contraction was largely attributed to the pandemic effects that saw the government adapt to policy measures to cushion the economy from further shocks.
Njoroge said that the continued reopening of the economy and a recovery in sectors such as manufacturing would support the growth of the economy in 2021.
The country’s economy was crippled by the COVID-19 pandemic effects as restrictions were put up in order to curb the virus which in turn led to reduced revenues and stifled growth.
In its forecast, the National treasury had noted that the country’s economic growth will exceed six percent.
CBK is also expected to review the growth rate forecast in October 2021 after receiving quarter one and two GDP data.