The world bank has projected Kenya’s real gross domestic product (GDP) will grow by 5.5 per cent in 2022 and 5.2 per cent on average in 2023–24.
This growth rate will be a moderation following a remarkable recovery in 2021 from the worst economic effects of the pandemic when the country’s economy grew by 7.5 per cent, much higher than the estimated average growth in Sub-Saharan Africa of 4 per cent.
According to the 25th edition of the World Bank Kenya Economic Update, Aiming High: Securing Education to Sustain the Recovery, the impact of the war in Ukraine is weighing on the global economic recovery from the pandemic.
Domestically, a key risk to the outlook is a further worsening of the current drought, which is having a devastating effect on food security and livelihoods in affected parts of the country and is necessitating increased social spending on food assistance.
“While Kenya’s economy has been resilient, the multiple recent shocks show the urgency of improving social protection mechanisms to cushion the most vulnerable households. This will enable Kenya to move away from other more costly and less well-targeted support measures such as fuel subsidies.” World Bank Country Director, Keith Hansen.
The world bank further notes that Kenya’s economic performance remained strong in the early months of 2022, but external challenges have mounted. The economy is vulnerable to the commodity price shocks resulting from the war, particularly through fuel, fertilizer, wheat and other food imports.
Read also; Kenya’s Poverty Rate to fall to 33.4% in 2022- World Bank.
