Kenya’s economic growth slows down

Kenya’s economy shed off slightly over half a percentage point in the first three months of this year to 4.9%.

According to the East African nation’s statistics office, Kenya was “somewhat” spared the brunt of the Covid-19 pandemic during the period, except for the hospitality sector which has been hit hard.

The Kenya National Bureau of Statistics says the hospitality industry shrunk by nearly 10% due to massive cancellations and suspension of international travels as well as an unprecedented closure of hotels and other tourist sites, as the country raced against time to contain the spread of coronavirus.

Kenya’s major trade partners such as China, the European Union and the United States suffered far reaching effects of the Covid-19 pandemic and this meant, export earnings were immediately squeezed.

Traditional growth sectors that have been affected greatly include: Agriculture, transportation, financial services and retail.

The longer-term impact of the pandemic on the Kenyan economy is, however, expected to be fully understood in the next review which will capture the second quarter of the year (between April- June) being the period in which over 6,000 Covid-19 cases have been confirmed.

The International Monetary Fund has also warned that the country might face a negative growth for the first time in nearly three decades.