The multilateral bank believes the recovery on expected private sector investment and the access to improved credit in the post-crisis period will highly help Kenya in rebounding a strong economy.
Also, the favorable weather conditions are expected to boost agricultural performance and, in turn, improve food processing, increase exports, and strengthen household income.
“We expect a strong pickup in 2021 of about 5.2 percent, and here the main assumption is that investor confidence will be restored soon enough after containment of Covid-19, ” said Peter Chacha, the World Bank senior economist in a virtual briefing.
He also added that the quick recovery would be dependent on the regulations set by the government to contain the virus. So far, the rules set are dust-to-dawn curfew, closure of entertainment spots, and travel restrictions.
World Bank believes that well target policies in curbing the spread of Covid-19 may help in minimizing the fall of demand and massive layoffs, therefore supporting the economic resilience.
“Ensuring that vulnerable households have cash-on-hand, workers continue to receive salaries even when temporarily laid-off and ensuring that firms have enough cash flow (to pay workers and suppliers) and avoid bankruptcies, as well as supporting the financial system to avoid a credit crunch, are important,” says World Bank.