Kenya's Central Bank raises 2021 growth prospects

The Central Bank of Kenya (CBK) expects the Kenyan economy to now grow by 6.4 percent this year from a lower 6.1 percent earlier.

This is after the receipt of a strong opening half of the year with the economy having expanded by an average 5.3 percent in six months through to June.

Leading economic indicators into the second half have pointed to ongoing economic recovery with the expected rebound being largely a part of base effect following last year's 0.3 percent GDP contraction.

"Our new projections are based on the optimism that economic actors have followed the reopening of the economy," said CBK Governor Dr. Patrick Njoroge.

The services sector is expected to lead the rebound with a projected 10.4 percent growth rate ahead of industry at 5.6 percent.

Within the broad services sector, education is seen growing by 33 per cent ahead of ICT and 19 per cent and health at 9.3 percent.

Nevertheless, accommodation and restaurants are expected to contract for the second year running with the dip estimated at 8.2 percent.

Meanwhile, the Agriculture sector which served as a key safeguard for the economy last year is expected to tank by 0.6 percent after contracting in back to back quarters through to June 2021.

Sources:CGTN