NAIROBI, March 22 (NNN-AGENCIES) — Kenya’s economy is expected to stabilise at 6% in 2022 boosted by a strong performance at 11.9%, 9.9% in the second and third quarters of the 2021 Financial Year and remittances from the Diaspora.
This emerged from a consultative forum held on Monday between, National Development Implementation Coordination and Communication Committee (NDICC) and Development Partners on the government’s priority programs.
According to a NDICC, key macroeconomics indicators point to a quick rebound of the Kenyan economy from the Covid-19 impact with remarkable improvements witnessed in the services and industrial sector.
In the meeting which was led by Cabinet Secretary Fred Matiang’i, donors were informed that the government was targeting to vaccinate 26 million up from the current 27.1 million people aged 18 years and above to boost Covid-19 immunity and allow for more economic activities from increased interactions.
Similarly, the government will continue to roll out labor-intensive projects such as Kazi Mtaani, the construction of CBC classrooms and other infrastructural developments around the Big 4 agenda to provide the youth with job opportunities and create incomes for families.
An additional 50 new Level 3 and Level hospitals are set to be constructed across the country to ease pressure on the Kenyatta National Hospital and other referral institutions.
However, the war in Ukraine is affecting the economy by disrupting the export-import supply chain that could especially affect fuel prices.
Since last week, consumers in Kenya are paying Kshs 5 more for a litre of super petrol same as diesel according latest fuel adjustment by the Energy and Petroleum Regulatory Authority (EPRA).
EPRA however kept kerosene consumers shielded from further price hike amid weak shilling and rising global crude oil prices.
Between January and February, average landed cost of imported super petrol per cubic metre increased by 13.34% from $596.79 to $676.40 while the same quantity of diesel also rose surged by 11.74% to $677.31 from $606.16.
Similarly, average landed cost of imported kerosene per cubic metre increased by the highest margin at 15.94%, from $534.38 to $619.57.
“The applicable pump prices for this cycle for super petrol and diesel have increased by Kshs 5 while that of kerosene has been maintained at the same level as on the immediate previous cycle. The government will utilize the Petroleum Development Levy to cushion consumers from the otherwise high prices,” said Kiptoo Bargoria, EPRA Directo Gener
Meanwhile, remittance inflows by Kenyans living abroad have recorded a 23.5% year-on-year increase to reach 36.7 billion ($321.5 million) in February 2022.
This compared to Kshs. 29.7 billion ($260.3 million) Kenyans overseas sent home during the same month last year according to the Central Bank of Kenya.
Month-on-month inflows however fumbled as remittance inflows declined 5.1% when compared to January this year when Kenyans abroad sent home Kshs. 38.6 billion ($338.7 million) in what the CBK attributes to seasonal factors.
Nonetheless, cumulative inflows for the 12 months period ending February 2022 increased 21.7% to reach Kshs. 437.8 billion ($3.84 billion) compared to Kshs. 359.7 billion ($3.16 billion) during a corresponding period last year.
“USA remains the largest source of remittances into Kenya, accounting for 58% in February 2022,” SAID CBK.
Total remittances from North America amounted to Kshs. 20.8 billion ($182,405.81) while those from Europe amounted to Kshs. 7.8 billion ($66,515.55).
Diaspora remittances from the rest of the world amounted to Kshs. 8.3 billion ($72,610.42) according to the latest data from CBK. — NNN-AGENCIES
