Kenya’s economy to rebound this year but remains vulnerable – World Bank

NAIROBI, June 30 (Reuters) – Kenya’s economy to grow 4.5% this year as vaccinations and easing lockdown help it recover from a coronavirus-induced slump last year , although it has always remained very vulnerable to the pandemic, the World Bank announced on Wednesday. .

The growth of the East African country, which depends on agriculture and services like tourism, is expected to exceed 5% over the next two years, the bank said in a biannual report.

This year’s growth projection hinges on increased production and investment by companies as lockdowns are lifted, a slight recovery in the service sector thanks to vaccinations and adequate harvests, the bank said. .

The main risks include a slow vaccination program caused by supply shortages and logistical problems, as well as any weakening of the global economy that could dampen demand for Kenya‘s exports.

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“The short-term economic outlook for Kenya, as elsewhere, remains unusually uncertain and depends on the course of the pandemic,” the World Bank said.

He urged the government to strengthen banking supervision after asset quality was hit by the impact of the coronavirus crisis, and to stick to its debt reduction trajectory by increasing income and reducing waste.

(Reporting by Duncan Miriri; Editing by Raissa Kasolowsky)

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