Kenya’s economy rebounded from the effects of COVID-19 in 2022 registering a 7.5% growth in 2021 according to the data from the Kenya National Bureau of Statistics (KNBS.) This is the highest rate of growth for the Kenyan economy since 2010 when gross domestic product improved by a record of 8.1%.
The Economic Survey of 2022 details the progress made by different sectors with only the agricultural sector reporting a contraction. The growth was attributed to growth in a number of sectors after the lifting of COVID-19 restrictions.
Speaking during the launch of the survey report on Thursday, CS National Treasury Amb.Ukur Yatani said, “2020 was the climax of COVID-19, restrictions, the poor performance of businesses and the challenges that people are going through and for us 2021 was the recovery period where all sectors have shown tremendous performance except agriculture.”
“Agriculture did well in 2020 but unfortunately did poorly in 2021, and you can understand we received minimal rains last year and at the same time there was locust invasion, and fertilizer challenges.” He said.
The manufacturing sector grew by 6.9% compared to a negative 0.4% growth in 2020, Accommodation and Food Services grew by 52.4%, the SGR cargo business earned the country Ksh 13B, and the Passenger train Madaraka express brought in Ksh 2.2B. However, the country’s economy remains largely dependent on agriculture which accounts for 22.4% of GDP.
Kenya’s top exports to the rest of the world in 2021 included horticultural products, tea and coffee. On the other hand her top imports paid for in foreign currency, were petroleum products, industrial machines, iron sheet, animal and vegetable fats and oil for human consumption.
As the country struggles with the high cost of living and the global increase in commodity prices, the inflation rate rose to 6.1% in 2021 the highest since 2018. At the moment the inflation rate stands at 6.5%.
“All the other sectors of the economy are expected to continue on a growth trajectory after a successful containment of the Covid-19 pandemic and the projected peaceful General elections given the country’s mature democracy.” Amb.Ukur Yatani – CS National Treasury
Kenya compares favorable to her neighbours with Uganda coming closest with a 4.7% growth in gross domestic products.