Kenya’s economy grew by 7.5% in 2021 from 0.3% contraction in 2020; KNBS
Kenya’s economy rebounded to 7.5 percent in 2021 from a 0.3 contraction that was registered in 2020 when coronavirus hit the shores.
This is according to the Kenya National Bureau of Statistics (KNBS) report released on May 5, 2022.
The record Gross Domestic Product (GDP) growth has been attributed to the relaxed coronavirus restriction and the rollout of the vaccines.
“Relaxation of various COVID-19 containment measures coupled with the roll-out of COVID-19 vaccination had a positive effect on economic activities,” said KNBS.
It’s the highest economic growth rate since 2010 when GDP witnessed an 8.1 percent uptick.
Hospitality industry recorded the highest growth rate of 52.5 percent from a 47.7 percent decline in 2020 after the reopening of hotels, bars and restaurants.
Education sector was second at 21.4 percent from a decline of 9.3 percent in 2020.
Finance and insurance activities expanded at the third-highest rate of 12.5 percent from 5.9 percent growth in 2020.
Manufacturing, wholesale and retail trade, transport and storage all recovered from contractions in 2020 to grow by 6.9, 7.9 and 7.2 percent respectively.
However, one of Kenya’s key economic indicators, agriculture, contracted by 0.2 percent from a 4.6 percent growth in 2020.
National Treasury Ukur Yatani mirrored the contraction to locust invasion coupled with coronavirus restriction.
“The agricultural sector is estimated to have contracted by 0.2 percent in 2021 amid unfavourable weather conditions in various parts of the country which resulted in reduced crop and livestock production.”