Projected Outlook Of Kenya’s Economy In 2023

Economic prosperity is what every country longs for, a stable economy translates to a healthy nation. Contrarily Kenya is yet again to face economic growth shockwaves and instability in the coming years Global financier and lender World Bank, during its Horn of Africa Economic update, Kenyasn Economic growth will downgrade to a magnitude of 5%   from 5.5% as earlier projected for the fiscal year 2023-2024.High inflation rates, foreign depts and food insecurity are the core factors and triggers which has seen the changes in the growth base. The prices of consumable commodities like wheat, milk and flour have recently escalated at an alarming rate strangling the feeble economy and majority of households recovering from economic hardships left by covid-19 pandemic and Russian – Ukraine conflicts.

According to Kenya National Bureau of Statistics (KNBS) report the inflation rate as of August 2022 had hit 8.5 per cent in August 2022 up from 8.3 per cent in July 2022. World Bank has warned that if there is no checks and balances on inflation rates the economic growth could downgrade further from projected outlook. Currently the Horn of Africa (Somalia, Kenya, Uganda, South Sudan, and Ethiopia) is experiencing the worst drought over decades. This has greatly affected the production of consumable products especially in Agricultural sector which has always been deemed as backbone of in Kenyan Economy. Over 20 million people are facing starvation, hunger, food insecurity and malnutrition.

World Bank on its updates as well indicated that the Global head wings will have an impact of Kenyan economic outlook. Kenya is risking stagnation amid high-interest rates and debt which has forced the Kenyan government to make difficult choices as they try to protect jobs, purchasing power and infrastructural gains. According to the National Treasury, Kenya alone has been penalized kes 1.312 billion shillings for the fiscal year ended June 2022 of which it has adversely hindered the deliverables of Kenyan Government. Technically World Bank analysis shows that economic Growth in the Horn of Africa will slow down to 3.3% for the fiscal year 2022 from 4.1 % recorded in the year ended 2021.

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