Written By Mary Mumbua 📝
According to new data from the Kenya National Bureau of Statistics-KNBS, the Kenyan economy recovered from COVID-19-related woes in 2020 to grow by 7.5% in 2021.
This is to recover from a 0.3% contraction in 2020, which was brought on by the pandemic’s economic strife.
According to rebased economic data from the statistician’s office, this is the highest rate of growth for the Kenyan economy since 2010, when GDP increased by a record 8.1 percent.
During the year, the economy benefited largely from low base effects, with the reopening of various sectors following pandemic-related closures lifting activity.
“Relaxation of various COVID-19 containment measures coupled with the roll-out of COVID-19 vaccination had a positive effect on economic activities,” KNBS said on Thursday.
As such, all sectors of the economy expect agriculture to post growth across 12 months to December 2021.
Accommodation and food services recorded the highest rate of growth at 52.5 percent from a decline of 47.7 percent in 2020 following the reopening of hotels, bars and restaurants after controlled closures to manage the spread of COVID-19 infections.
The education sector posted the second-highest rate of growth at 21.4 percent from a decline of 9.3 percent in 2020 following the restart of in-person learning in schools and other educational institutions.
In-person learning across the country has been suspended in March 2020 as a countermeasure to inhibit the spread of the pandemic.
Meanwhile, finance and insurance activities expanded at the third-highest rate of 12.5 percent to exceed the 5.9 percent growth rate posted in 2020.
Manufacturing, wholesale & retail trade, transport, and storage all recovered from contractions in 2020 to grow by 6.9, 7.9, and 7.2 percent respectively.
The Agriculture sector has been the only sector to defy the trend having posted a contraction of 0.2 percent from an expansion of 4.6 percent.
“The agricultural sector is estimated to have contracted by 0.2 percent in 2021 amid unfavorable weather conditions in various parts of the country which resulted in reduced crop and livestock production,” KNBS noted.
Wheat, sugarcane, coffee and tea production fell by 39.4, 14.3, six and 5.6 percent respectively in 2021.
The notable growth for the accommodation and food services sector was backed by a 50.3 percent rise in international visitor arrivals in 2021 following the ease of travel restrictions in and out of the country.
