Kenya’s economic outlook is expected to remain ‘blurred by the uncertain path of the pandemic’ despite the roll-out of the vaccine to deal with the coronavirus pandemic, said NCBA Report released on Thursday.
Kenya, according to the Monthly Economic Report for May 2021, policy support will be crucial in underpinning a sustained momentum despite limited space on the fiscal side and efficacy concerns on the monetary front.
“All said, it is evident that the government will prioritize economic recovery, which is essential in maintaining a sustainable public debt path. To this end, spending will remain above 25% of GDP in the next fiscal year, although this will sustain debt above 70% of GDP,” part of the report reads.
“However, we expect the quality and character of debt to continue improving, reducing potential short term liquidity challenges for the sovereign. prioritization of concessional debt, an extension of duration as well as renegotiations with partners should provide some much-needed space spur spending.”