Covid Impact: Kenya’s Economy Lost KSh560bn In 2020

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The economy of Kenya has suffered an estimated loss of Ksh 560 billion in revenue in 2020 due to the coronavirus pandemic.

President Uhuru Kenyatta on Friday during a televised address that announced the extension of a nationwide overnight COVID-19 curfew for 60 days, revealed that the pandemic had greatly affected the economy.

“Last year, fellow Kenyans, the Kenyan economy was projected to grow by 6.2%, but it only grew by 0.6% because of the COVID-19 pandemic,” Kenyatta said, adding that further, projections indicate that, despite the COVID plunge, our economy is likely to bounce back and grow 7 per cent in 2021.”

“If we had not made the bold decisions of 2020, as is projected, our economy would, in 2021 contract by 15 per cent.”

“The opportunity cost of saving these lives was therefore the foregoing of Sh560 billions of GDP in order to preserve life. Indeed, it was worth every cent,” said Uhuru.

Kenya is currently battling the third wave with Covid infections rising yet again with potential adverse implication for businesses and household incomes.

Monday, the Ministry of Health said the number of positive cases hit 113,967, with the cumulative tests conducted standing at 1,373,839. The total number of recoveries are at 88,596 and cumulative fatality numbers at 1,918.

“While Kenya has commenced immunization, vaccine shortages remain glaring and sustained double-digit mobility rates could warrant reinstatement of some activity and mobility restraining public health restrictions. This could hurt the recovery in revenues sustaining a fairly high deficit,” Notes NCBA Research.