Kenyan Treasury says growth to fall below 6 percent in coming fiscal year

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A shop steward arranges dairy products at the Quick Mart Lavington supermarket in Nairobi on January 24, 2019. (Photo by SIMON MAINA / AFP) (Photo credit should read SIMON MAINA/AFP/Getty Images)
A shop steward arranges dairy products at a supermarket in Nairobi on January 24, 2019. (Photo by SIMON MAINA / AFP) (Photo credit should read SIMON MAINA/AFP/Getty Images)

Kenya’s economic growth is projected to slow down to 5.9 percent in the 2022/2023 financial year due to the uncertainty associated with the general election, the National Treasury said in its budget review outlook paper released Friday.

The Treasury said that while the economy would recover from the effects of the COVID-19 pandemic and grow at 6.2 percent in the 2021/2022 fiscal year, it would shrink in the next fiscal year and then recover to 6.3 percent in the 2025/2026 fiscal year.

“To strengthen the economic recovery, the budget for the financial year 2022/2023 and the medium term will focus on resource mobilization and reduction on non-core expenditures in order to reduce the fiscal deficit and ensure debt sustainability,” the Treasury said.

Ukur Yatani, cabinet secretary of the National Treasury, said the government is seeking to build a resilient and sustainable economic recovery as the country prepares for the 2022 general election, which comes with various uncertainties.

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