Kenya Economic Outlook
May 26, 2020
The economy has further deteriorated in the second quarter as confinement measures to slow the spread of Covid-19 are constraining domestic activity, while lockdowns abroad are depressing tourism revenues and remittance inflows. In April, the private sector PMI hit a two-and-a-half-year low amid social-distancing measures and input shortages. Exacerbating matters, heavy rains are further threatening food security and agricultural production, following the locust invasion earlier in the year. In a bid to cushion the hit to the economy, the government is planning an additional USD 500 million stimulus package, while the World Bank on 20 May approved a USD 1.0 billion loan aimed to help fill the budget gap generated by the coronavirus shock. This comes on the heels of a USD 739 million disbursement from the IMF earlier in May. Against a deteriorating fiscal backdrop, on 7 May Moody’s revised its outlook from stable to negative, while affirming its B2 rating.Kenya Economic Growth
The coronavirus pandemic and its associated confinement measures are set to deal a heavy blow to the economy this year. Subdued global demand and restrictions to travel will depress exports and the tourism sector. Meanwhile, the threat of a second wave of locust swarms poses a further downside risk to the outlook. FocusEconomics analysts project GDP growth of 1.5% in 2020, which is down 0.4 percentage points from last month’s forecast, and 5.3% in 2021.Kenya Economy Data
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Kenya Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 12.20 | 0.0 % | Dec 31 |
| Exchange Rate | 101.4 | 0.05 % | Jan 01 |
| Stock Market | 0.4 | 0.0 % | Jan 07 |
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Kenya Economic News
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Kenya: Private sector PMI increases in June but remains in contractionary territory
July 3, 2020
The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Bank Kenya—increased notably to 46.6 in June from 36.7 in May.
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Kenya: GDP growth slumps to over two-year low in Q1
June 30, 2020
GDP growth slowed to 4.9% year-on-year in the first quarter, down from 5.5% in the fourth quarter of last year, according to Kenya’s Statistical Institute (KNBS).
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Kenya: Inflation falls to lowest level since September 2019 in June
June 30, 2020
Consumer prices fell a seasonally-adjusted 0.31% in June over the previous month, swinging from the 0.63% rise logged in May.
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Kenya: Central Bank stands pat in June
June 25, 2020
At its 25 June meeting, the Monetary Policy Committee (MPC) of Kenya’s Central Bank retained the Central Bank rate at 7.00%, where it has been since 29 April.
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Kenya: Government unveils FY2020 budget against Covid-19 backdrop; sets a trajectory for consolidation
June 19, 2020
On 11 June, the government presented a KES 2.79 trillion (around USD 26 billion) budget for fiscal year 2020–2021, which will start on 1 July and run through to 30 June 2021.
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