Kenya’s Economy to Pick in 2 Months – CBK Survey

According to a survey conducted by the Central Bank of Kenya (CBK), economic activity is expected to increase in the next two months. This is as the economy reopens with the lifting of restrictions imposed following the COVID-19 closures and the resumption of near-normal business by virtually all sectors.

As the economy recovers from the pandemic’s effects, increased government expenditure on infrastructure is projected to boost economic growth even further.

CBK Survey

Furthermore, 36% of respondents stated that increased business morale following the launch of the COVID-19 vaccine would benefit economic activity. Favorable weather and agricultural reforms, on the other hand, are projected to improve economic activity in the next two months, according to 29% of respondents.

According to the March 2021 Consumer Expectations Report, sustained confidence in the country’s economic prospects for the next 12 months is largely attributed to the rollout of Covid-19 Vaccine. 

As the economy recovers from the effects of the virus and containment measures, the CBK anticipates increased economic activity in March and April. The CBK has updated its financial growth forecasts for 2021 in comparison to the previous survey, owing to the anticipated recovery in all sectors hit by COVID -19 in 2020.

Banks expect private sector credit growth to increase in 2021, owing to a pick-up in economic activity, though inflation expectations remain stable due to low food prices.