The World Bank has noted has noted the resilience of Kenya’s economy despite COVID-19 shock 2021 as a whole with the gross domestic product (GDP) expected to grow by 5% in 2021 and 4.9% in 2022, one of the faster recoveries among Sub-Saharan African countries.
According to the 24th edition of the Kenya Economic Update, the rebound will be driven by the services sector as employment conditions and household incomes improve above pre-pandemic levels.
“Kenya’s economy has shown considerable resilience to the enormous shock of the pandemic, and this year is expected to post one of the stronger growth rebounds in the region thanks to diversified sources of growth and sound economic policies and management,” said Keith Hansen, World Bank Country Director for Kenya. “However, poverty has increased, and the buffers and coping mechanisms of households, firms, and the public finances have been depleted.”
The report further noted that the mix of containment measures which were in effect through most of 2021 were limiting the impact on economic activities.
World Bank on Vaccine Rollout
The vaccine rollout has picked up as new shipments of vaccines have arrived supporting the economic recovery and growth through the third quarter of 2021.
As of December 6, 2021, about 10% of adults (2.9 million people) had been fully vaccinated while another 16% (4.9 million people) had received their first dose against an adult population of about 30 million.
The report notes that the drought conditions affecting some parts of the country is one of the key domestic risk factors already causing severe hardship.
“Should the drought intensify or spread, this would weigh on the near-term economic outlook. Weaker global growth, higher-than-anticipated energy prices, and tighter external financing conditions are the primary external risks.” reads the report in part.
READ; World Bank Offers $150 Million to Kenya for Drought Mitigation
