World Bank projects a 5.2 percent growth in Kenya’s economy come 2021.

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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.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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