This archive report was first published on 6 July 2021.
Published on July 6, 2021, the World Bank's Kenya Economic Update Report highlights the country's economic recovery is uncertain due to the COVID-19 pandemic.
The report warns that a slow vaccine rollout could weaken Kenya's economic recovery, with the World Bank Country Director, Keith Hansen, stating that the country's economic outlook remains bleak due to the pandemic.
However, Hansen notes that a plan to vaccinate the entire adult population by mid-2022 could boost recovery in many sectors, albeit unevenly.
Kenya's GDP is forecast to grow by 4.5% in 2021, a partial recovery from the COVID-19 pandemic that caused growth to stall last year.
The World Bank expects the country's growth in the next two years to average over 5.0%, driven by an upturn in industry, strong capital spending, and moderate recovery in services and agriculture.
Private consumption is expected to continue its recovery, supported by wages and incomes of households, as well as resilient diaspora remittances.
The World Bank has announced additional financing for COVID-19 vaccination in the order of $130 million, which is expected to pay for vaccine doses for 6.13 million persons (12.5% of the population).
