Kenya’s economic growth is expected to decline significantly in 2020, from a baseline estimate of 6.2 percent to possibly 3.4 percent, as a result of the Coronavirus pandemic.
According to the Central Bank of Kenya( CBK), the pandemic will largely cause the economic slump, arising from reduced demand by Kenya’s main trading partners, disruptions of supply chains and domestic production.
“While the extent of the adverse effects of the pandemic on the Kenyan economy is still evolving, it is already evident that the impact may be severe. The fundamental concerns and anxieties centre on the health impact, job losses, and duration of the crisis,” CBK said in a statement issued in Nairobi.
Meanwhile, according to CBK, overall inflation is expected to remain within the target range in the near term, reflecting lower food prices with the favourable weather conditions, a decline in international oil prices and muted demand pressures.
Kenya on Monday confirmed its 16th Corona virus case.
JK/abj/APA