The file photo shows a taxi driver leaning against his car in Nairobi, the capital of Kenya, Nov. 14, 2020. (Xinhua/Chrispinus Omar)
Kenya’s economy is projected to grow by 5.8 percent in 2022, down from 7.5 percent in 2021, says a report.
NAIROBI, Dec. 26 (Xinhua) — Kenya’s economy is projected to grow by 5.8 percent in 2022, down from 7.5 percent in 2021, says a report released here on Wednesday.
The report by the Kenya Institute for Public Policy Research and Analysis (KIPPRA), a state-owned think tank, says the growth will be supported by a rebound in consumption and envisaged recovery in all sectors of the economy.
“Notably, the agriculture sector is estimated to grow by 2.3 percent in 2022 compared to a contraction of 0.2 percent registered in 2021 caused by the drought experienced in the country,” the think-tank said in its latest edition of the Kenya Economic Report.
Workers transport bananas to a storage facility at Wakulima Market in Nakuru County, Kenya, on Sept. 1, 2022. (Photo by Sheikh Maina/Xinhua)
The annual report provides the country’s economic performance and prospects for the medium term. It notes that Kenya’s economy is projected to grow on average by 5.3 percent in the medium term.
It says the easing of the COVID-19 containment measures, as well as the accelerated uptake of vaccines, is contributing to the economic recovery process.
KIPPRA noted that looking ahead, the country faces downside risks, including uncertainty on the dynamics of the COVID-19 pandemic, weather-related shocks that have become frequent and intense, as well as a surge in commodity prices, worsened by the Russia-Ukraine conflict.
KIPPRA Executive Director Rose Ngugi said the slowdown in the agriculture sector due to drought calls for more investments in irrigation to reduce over-reliance on rain-fed farming.
Ngugi urged the government to implement a growth-oriented fiscal policy with targeted financial support to the services and industrial sectors. ■