The Kenyan Ministry of Finance this week presented a budget of 28 billion dollars. Objective: to revive an economy affected by the loss of hundreds of thousands of jobs caused by the Covid-19 pandemic. The Kenyan Central Bank has published its survey concerning the apprehension of companies regarding the country’s economic prospects, their confidence in growth, their expectations and fears for the next quarter and more generally for the year 2022. The study wants to be representative of the most important economic sectors of Kenya such as industry, trade, energy and mines, agriculture or tourism. While companies are generally optimistic and welcome the post-pandemic recovery, they are nonetheless worried about the upcoming elections and the war in Ukraine.
” Heightened political uncertainty is the biggest concern for businesses notes the Kenyan Central Bank report. The bosses fear that the ” investors take a wait-and-see attitude » in the run-up to the ballot which is to be held at the beginning of August. Fears that particularly affect the service and industrial sectors. The 2017 presidential election crisis had significant consequences for economic operators.
” Stronger inflationary pressures »
Another cause for concern: the war in Ukraine. She ” poses a substantial threat to growth notes the Kenyan Central Bank report. ” Which leads to stronger inflationary pressures and could erode the gains made from the ongoing post-Covid-19 recovery.
The pandemic and the Russian-Ukrainian conflict are contributing to the persistent disruption of global supply chains, economic actors still indicate. The agricultural sector feels particularly concerned. Operating and cargo costs are also mentioned. Other factors pointed out: the rise in commodity prices, inflation or even the stability of the Kenyan shilling.
Favorable climatic conditions
Among the favorable points, the players surveyed highlight the reduction in electricity prices made by the authorities, they would like to see efforts made to improve infrastructure, and anticipate favorable climatic conditions for the agricultural sector.
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