Kenya Economic Outlook
August 25, 2020The economy likely contracted in the second quarter due to restrictive measures weighing on productive capacity as well as domestic and foreign demand. Merchandise exports fell at a double-digit rate in the period, while imports dropped by over a quarter year-on-year, highlighting weakened domestic demand. However, early data for the third quarter suggests the economy has begun to rebound. In July, operating conditions in the private sector improved at a strong pace, with the PMI returning to expansionary territory for the first time in seven months, as the continued easing of restrictive measures led to a recovery in demand. In the same month, price pressures eased to a 10-month low, which should have supported private consumption. Meanwhile, international flights resumed on 1 August, which should be further stimulating activity.
Kenya Economic GrowthWhile a recession should be avoided this year, the economy will still be derailed by Covid-19 and associated containment measures, weighing heavily on domestic and foreign demand. Social distancing measures are seen dragging on output capacity and activity, while foreign measures weigh on tourism and trade. A second locust invasion further clouds the outlook. FocusEconomics analysts project GDP growth of 1.0% in 2020, which is down 0.1 percentage points from last month’s forecast, and 5.3% in 2021.
Kenya Economy Data
5 years of Kenya economic forecasts for more than 30 economic indicators.
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|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
September 3, 2020
The Purchasing Managers’ Index (PMI)—produced by HIS Markit and Stanbic Bank Kenya—decreased slightly to 53.0 in August, down from July’s 54.2.
August 31, 2020
Consumer prices rose 0.20% in seasonally-adjusted month-on-month terms in August, accelerating from July’s 0.08% increase.
August 5, 2020
The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Bank Kenya—jumped to 54.2 in July, from 46.6 in June.
August 3, 2020
Consumer prices increased a seasonally-adjusted 0.08% over the last month in July, rebounding from June's 0.31% drop, amid improving demand conditions and rising oil prices. Inflation came in at 4.4% in July, easing from June’s 4.6% result.
July 30, 2020
Consumer prices increased 0.08% in month-on-month seasonally-adjusted term in July, swinging from June’s 0.31% fall.