Modest stability predicted for rest of 2020
Steve Umidha @STeveUmidha
Experts believe Kenya’s economy will witness an improved performance in the next four months riding on manufacturing and agriculture sectors.
“Agricultural sector has performed impressively, and I expect to see the same momentum carry on,” said Bimal Kantaria chair of Agriculture Sector Network.
He made those remarks yesterday during a webinar organised by Kenya Private Sector Association and Kenya Association of Manufacturers where Jibran Qureishi, head of Africa Research at Stanbic Bank predicted a robust last quarter of 2020 on removal of county travel restrictions early July.
He said the business sentiment for August were highly expected to reflect on growth.
Purchasing index
“With the restrictions lifted I can only predict an improved working environment for manufacturers,” said Qureishi.
Activity in Kenya’s private sector registered an increased fastest pace in a year in July on the back of a gradual easing of coronavirus lockdown measures – this despite the Kenya private sector shrinking the least in 4 Months (March to June 2020) due to a lockdown, while Kenyan GDP Growth remained weakest in almost 3 years.
The Stanbic Bank Kenya Purchasing Managers’ Index jumped to 54.2 in July, from 46.6 in the previous month, well above the 50.0 mark that separates growth from contraction. July’s level was the highest since June last year.
During that period sectors including tourism, retail, and agriculture were negatively affected by the country’s job market.
