Kenya IMF tips Kenya economy to hit Sh10trn this year
The size of Kenya’s economy is projected to reach the Sh10.1 trillion mark this year, the latest statistical estimates by the International Monetary Fund (IMF) have shown.
This will mark the largest absolute expansion in recent years, with the gross domestic product (GDP) estimated to rise by Sh1.1 trillion from Sh9 trillion in 2018.
In percentage terms, the growth this year is estimated at 5.83 percent, a slight decrease from 5.95 percent last year.
If the IMF projections hold out, Kenya’s economy could grow to Sh15.7 trillion in 2023.
The country expects to start commercial oil exports in 2022, a move that is expected to boost the GDP considerably.
A larger economy, coupled with strong growth in the coming years, means better prospects for expansion of jobs, labour earnings, investment opportunities and delivery of social services by the government.
Kenya’s current economic growth momentum is being fuelled by massive investments by the government and the private sector amid a favourable macroeconomic environment featuring low inflation and controlled interest rates.
Kenya’s economy is expected to remain dominant in the region, staying ahead of its rivals in terms of overall size and the welfare of the average citizen as expressed in GDP per capita.
Ethiopia’s GDP, which was previously tipped to overtake Kenya’s economy, is now projected to grow 7.7 per cent to $90.9 billion (Sh9 trillion) this year.
That of Uganda is expected to expand 6.2 per cent to $30.3 billion (Sh3 trillion).
Tanzania is estimated to register the lowest growth rate of 3.9 per cent to $61 billion (Sh6.1 trillion), interrupting its recent rapid expansion that has stood at more than six per cent per annum.