The Kenyan government is expecting the economy to grow at 5.8 per cent in 2022-23 and an average of 6.2 per cent over the medium term in line with its financial year projections.
Kenya registered a growth of 6.7 per cent in 2021 after a 0.3 per cent contraction in 2020.
“This outlook will be reinforced by the ongoing implementation of the strategic priorities of the government under the ‘Big Four’ Agenda and the economic recovery strategy,” noted the Treasury. in its Budget Review and Outlook Paper for 2022.
“Additionally, the government is implementing the third phase of the economic stimulus programs that target strategic interventions in agriculture, health, education, drought response, policy, infrastructure, financial inclusion, energy and environmental conservation.”
However, the National Treasury noted that certain tailwinds might dampen the economic outlook.
“On the domestic front, the emergence of new Omicron COVID-19 variants may cause restrictive measures. Other risks relate to lower agricultural output due to potential adverse weather conditions,” said the Treasury.
Externally, the key risks include uncertainty about the global outlook, reflecting adverse effects of the conflict in Ukraine, inflationary risks from rising prices of food and oil and supply chain constraints as well as increased global financial markets volatility amid the tightening of monetary policy in advanced economies.