Kenya’s Economy Recovers To Grow At The Fastest Rate In 11 Years

By Kepha Muiruri For Citizen Digital 

The Kenyan economy rebounded from COVID-19 led woes in 2020 to grow by 7.5 per cent in 2021 according to fresh data from the Kenya National Bureau of Statistics (KNBS).

This to recover from a 0.3 per cent contraction posted in 2020 on the backdrop of the economic strife bought by the pandemic.

This is the highest rate of growth for the Kenyan economy since 2010 when gross domestic product (GDP) improved by a record 8.1 per cent according to rebased economic data from the statistician's office.

During the year the economy was largely a beneficiary of low base effects with the reopening of various sectors after the pandemic led closure lifted activity.

“Relaxation of various COVID-19 containment measures coupled with the roll-out of COVID-19 vaccination had a positive effect on economic activities,” KNBS said on Thursday.

As such, all sectors of the economy expect agriculture to post growth across 12 months to December 2021.

Accomodation and food services recorded the highest rate of growth at 52.5 per cent from a decline of 47.7 per cent in 2020 following the reopening of hotels, bar and restaurants after controlled closures to manage the spread of COVID-19 infections.

The education sector posted the second-highest rate of growth at 21.4 per cent from a decline of 9.3 per cent in 2020 following the restart on in-person learning in schools and other educational institutions.

In-person learning across the country has been suspended in March 2020 as a countermeasure to inhibit the spread of the pandemic.

Meanwhile, finance and insurance activities expanded at the third-highest rate of 12.5 per cent to exceed the 5.9 per cent growth rate posted in 2020.

Manufacturing, wholesale & retail trade, transport and storage all recovered from contractions in 2020 to grow by 6.9, 7.9 and 7.2 per cent respectively.

The Agriculture sector has been the only sector to defy the trend having posted a contraction of 0.2 per cent from an expansion of 4.6 per cent.

“The agricultural sector is estimated to have contracted by 0.2 per cent in 2021 amid unfavourable weather conditions in various parts of the country which resulted in reduced crop and livestock production,” KNBS noted.

Wheat, sugarcane, coffee and tea production fell by 39.4, 14.3, six and 5.6 per cent respectively in 2021.

The notable growth for the accommodation and food services sector was backed by a 50.3 percent rise in international visitor arrivals in 2021 following the ease of travel restrictions in and out of the country.