Kenya has revised its growth rate for 2023, with the Central Bank worried about mounting headwinds and a slowdown in the agriculture sector.
On Thursday, the Central Bank Governor, Dr Patrick Njoroge, expected the country’s economy to grow by 5.8% in 2023, down from earlier projections of 6.1%.
“We have looked a little carefully at agriculture and the development in the sector in light of the weather conditions that have prevailed in January, February and the first half of March,” CBK Governor Dr Patrick Njoroge said Thursday during a virtual media briefing post-MPC.
The Monetary Policy Committee raised its key policy rate by 75.00bps to a five-year high of 9.50%, citing the necessity to reign in the raging inflationary pressures.
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“Leading indicators point to a strong performance of the Kenyan economy in the first quarter of 2023, reflecting robust activity in the services sector, particularly wholesale and retail trade, accommodation and food services, education, and information and communication.”
“The economy is expected to remain resilient in 2023 despite the global uncertainties, supported by continued strong performance of the services sector and expected recovery in agriculture.”
“We have got reasonable assurances from the metrological department that the long rains we now have will be normal. The expectation on the short rains, however, is that we may have the El-Nino effects, which puts all our bets off,” added Dr Njoroge.