This archive report was first published on 8 October 2021.
On October 8, 2021, the World Bank announced an upward revision of Kenya's economic growth forecast to 5% in 2021, a significant increase from the 4.5% projected in June.
The improved forecast is attributed to growth in sectors such as construction, education, information and communication, and real estate, which are expected to contribute to the country's economic growth.
Treasury CS Ukur Yatani noted that the full resumption of activities in the education sector and the hotel industry, which were severely impacted by the COVID-19 pandemic in 2020, is likely to boost growth in 2021.
The World Bank's revised forecast is a welcome development for Kenya, which had previously been projected to experience a slower growth rate of 4.5% in 2021.
According to the Economic Survey 2021, the growth in global trade is expected to boost external demand for Kenya's products, thereby augmenting the country's economic growth.
Sub-Saharan Africa's economy is projected to grow by 3.3% in 2021 and 3.5% in 2022, driven by rising commodity prices, the lifting of some anti-coronavirus restrictions, and a pick-up in global trade.
