Report Suggests Kenyan Economy Will Rebound Before End of Year

Kevin Namunwa | Sep 17, 2020

A new report has suggested that the Kenyan economy will rebound in the last quarter of 2020 on the back of increased export of horticultural products, fruits, and tea to key markets.

The report which was released by Scope Markets said there will be a marked improvement especially of the horticultural industry, which was losing at least Sh106 Million per day as a direct impact of the Covid-19 pandemic three months ago.

This is against an earlier forecast of a contraction after key industries and manufacturing sectors were hit by the Covid-19 pandemic.

According to Scope Markets Kenya, the country’s flower industry which is the largest exporter of blooms to Europe is on the rebound following ease down on trade restrictions.

We have already witnessed an increase in export earnings in the period through July courtesy of the flower industry, and tea and fruits industries.

This improved performance is expected to impact the entire value chain positively, with renewed economic activities

The European market accounts for nearly 70% of Kenya’s cut-flower exports and coronavirus restrictions had slashed daily orders by half.

The report has also forecasted that Kenya’s economy will grow at 1.5% in 2020 driven by improved agricultural yields because of good rains and improved market conditions following an ease down of some of the strict Covid-19 restrictions.

Scope Markets analysts further noted that the Covid-19 pandemic has had a negative impact on all businesses and sectors within the Kenyan economy. However, some sectors such as delivery services or grocery stores, have seized growth opportunities presented by the pandemic, witnessing a spike in growth.

Co-op Bank Net Profit Slightly Drops to Ksh 7.2 Billion

The Co-operative Bank of Kenya’s net profit has dropped by 3.6% to Ksh 7.2 billion from last year’s K...