The Covid-19 shock has hit Kenya’s economy

Reported by
Faridah N Kulumba

The Covid-19 shock has hit Kenya’s economy hard through supply and demand shocks on both the external and domestic fronts, according to the updated World Bank in Kenya 2021 overview.

This shocks caused activity to slow down sharply from 2020 when Kenya received its first Coronavirus patient in March, the real gross domestic products is estimated to have contracted by 0.3%  in 2020.

The World Bank overview shows that, Agricultural output grew robustly, but manufacturing and many services subsectors of the economy for example tourism and education  were severely disrupted.

Kenya before Covid-19

Kenya has made significant political and economic reforms that have contributed to sustained economic growth, social development and political stability gains over the past decade.

Until the Covid-19 pandemic, Kenya was one of the fastest growing economies in Africa with an annual average growth of 5.9% between 2010 and 2018, with a GDP of $95 billion.

Kenya recently reached lower middle income status, and  has successfully established a diverse  and dynamic economy according to the USAID overview.

Challenges Kenya is facing

Kenya continues to face significant challenges to sustainable and inclusive economic growth, which have been exacerbated by Covid-19’s economic disruptions, which forced Kenya’s president to ban the importation of some commodities from the neighbouring countries.

Maria Achen a teacher who lost her job due to Covid-19 told African Report (AFP) that the pandemic has continued to threaten both the lives and livelihoods of Kenyans.

“Many Kenyans have been affected directly and indirectly by Covid-19, because many people lost their jobs, and this has caused poverty in many homes,”  said Ms Achen. The east African country is also facing other running challenges like corruption and income inequality.

Two-thirds of the Kenyan population lives in poverty below $3.20 per day and have since independence. And the gap between the rich and the poor in this country is so large USAID report said.

Will Kenya recover from the Covid-19 shock soon?

According to the World Bank’s recent report, Kenya’s economy outlook remains highly uncertain, as the Covid-19 continues to unfold in the country, with 5 counties still under lockdown.