CBK governor sees growth of 6.1% in 2021
- CBK has held its benchmark lending rate at 7.0%.
- The economy is bouncing back after uncertainties brought about by the pandemic.
Kenya Central Bank Governor Patrick Njoroge said on Wednesday he expects the economy to grow 6.1% this year and 5.6% in 2022, helped by sectors such as manufacturing.
Njoroge told a virtual news conference that economic contraction in 2020 of 0.3% was partly cushioned by policy responses that kept the economy from shrinking more.
On Tuesday, Kenya's central bank held its benchmark lending rate at 7.0%, with its monetary policy committee saying it had taken note of emerging local and global inflationary pressures.
The central bank said the economy was expected to rebound this year, supported by the continued reopening of the services sectors, recovery in manufacturing, and stronger global demand.
Njoroge said, however, there was concern over the agriculture sector, which could take a hit from drought.
"The one sector to flag is agriculture," he said.
The finance ministry says it forecasts 2021 economic growth to exceed 6%.
Kenya's economy, like others, has been hobbled by the coronavirus-induced crisis, as restrictions instituted to fight off the pandemic reduced revenues and stifled growth.
Recovery has started this year, but the pace could be curbed by a shortage of COVID-19 vaccines and new waves of infections, driven by the highly infectious Delta variant.
1 day ago
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