Treasury Secretary Ukur Yatani during June 11 budget reading. FILE PHOTO | NMG
Kenya's economy is expected to grow by less than 2.5 percent
this year, National Treasury Cabinet Secretary Ukur Yatani says, as the
country continues to reel from the effects of the coronavirus pandemic.
The economy has been battered by Covid-19, with tourism and small and medium-size businesses hit particularly hard.
Growth
is, however, expected to rebound to six percent in the medium term, Mr
Yatani said in a document posted on the Treasury's website ahead of a
formal launch of the budget-making process for the 2021/22 financial
year.
Interest and exchange rate stability "will be
safeguarded over the medium term", Mr Yatani said, adding that inflation
was expected to be contained within the 2.5 percent to 5.0 percent
band.
National Assembly's budget committee chairman
Kanini Kega warned that the economic situation would remain tough for
some time, with dire impact on the government's finances.
"Revenue collections are definitely expected to plunge," Mr Kega told an online event to launch the 2021/22 budget process.
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