Kenya Economic Outlook
June 21, 2022The economy is likely performing well compared to its regional peers so far in 2022, amid healthy credit growth and strong activity in the construction, IT, retail, transport and manufacturing sectors. That said, growth is likely easing from 2021. The war in Ukraine, global supply constraints and the domestic drought have spurred both consumer and producer price pressures in recent months. Survey data suggests this is eating into demand somewhat, with the private-sector PMI averaging lower in the first five months of 2022 relative to last year. Moreover, the drought is hurting agricultural output and has raised the amount of people facing food insecurity to 3.5 million. In other news, in June the government reportedly backed out of a USD 1 billion Eurobond sale due to elevated bond yields, and is also considering rolling back fuel subsidies to limit the gaping budget deficit.
Kenya Economic GrowthGDP growth will decelerate this year, as higher inflationary pressures, drought and tighter monetary policy temper demand. That said, Kenya should still record strong growth compared to the average for Sub-Saharan Africa. The shaky fiscal position, extreme weather events and political tensions in the run-up to and following the August elections are key factors to watch. FocusEconomics analysts project GDP growth of 5.2% in 2022, which is down 0.1 percentage points from last month’s forecast, and 5.1% in 2023.
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
June 14, 2022
Consumer prices rose 0.78% month on month in May on a seasonally-adjusted basis, down from April’s 1.69% increase.
June 6, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 48.2 in May, down from April's 49.5.
May 30, 2022
At its 30 May meeting, the Monetary Policy Committee (MPC) of the Central Bank of Kenya delivered the first rate hike since July 2015 and increased its Central Bank Rate by 50 basis points to 7.50%.
May 6, 2022
The Purchasing Managers’ Index (PMI)—produced by Stanbic Bank and S&P Global—fell to a three-month low of 49.5 in April from March's 50.5.
May 5, 2022
The economy lost steam in the final quarter of 2021, with GDP expanding 7.4% year on year.