The World Bank has projected Kenya’s economy to grow by 5% in 2021, an upward revision from 4.5% projected in June. The growth is occasioned by improvements in construction, education, information and communication, and real estate sectors.
Treasury CS Ukur Yatani says the full resumption of activities in the education sector and the hotel industry, which were almost halted for the better part of 2020, is likely to significantly boost growth this year.
The lender had previously cut Kenya’s growth forecast from 6.8%, which was to be the fastest in Africa, and a more ambitious prediction than the government’s estimate of 6.4%.
According to the Economic Survey 2021, the growth in global trade in is expected to boost external demand for Kenya’s products and thereby augment the country’s economic growth.
Overall, Sub-Saharan Africa’s economy is projected to grow by 3.3% in 2021 and 3.5% in 2022, occasioned by rising commodity prices, lifting of some anti-coronavirus restrictions, and a pick-up in global trade.