How Kenya’s economy performed in 2021, survey shows

Kenya’s economy improved significantly in 2021 over 2020, with most sectors showing considerable improvement.

According to the 2022 Economic Survey, the country’s Gross Domestic Product (GDP) increased from -0.3% in 2020 to 7.5 percent in 2021.

The Gross Domestic Product (GDP) is the total market value of goods and services generated by a country’s economy during a certain period.

Kenya’s economy has grown as a result of the easing of Covid-19 limitations and a favorable micro-environment, according to the Kenya National Bureau of Statistics (KNBS).

Kenya will receive Sh2.1 trillion in income in the 2021–2022 financial year, according to KNBS Director-General George Obudho, with taxes accounting for more than 80% of that total.

“The economy is predicted to have increased by 7.5 percent in 2021, compared to a decline of 0.3 percent in 2020,” Obudho stated at the Kenyatta International Convention Centre (KICC) in Nairobi during the unveiling of the 2022 Economic Survey Report.

The comeback in GDP in 2021 is the country’s strongest one-year growth rate in the prior five years.

For example, the growth rate in 2017 was 3.85 percent; in 2018, it was 5.65 percent; and in 2019, it fell by 0.5 percent to 5.1 percent.

According to the data, Kenya exported more items in 2021 than it did in 2020. Exports in 2021 totaled Sh743.7 billion, up from Sh643.7 billion the previous year.

Horticulture (Sh165.7 billion), tea (Sh130.9 billion), textiles (Sh42.7 billion), and coffee (Sh42.7 billion) were Kenya’s top exports (Sh26.1 billion).

Kenya, on the other hand, will import more items in 2021 than in 2020. Imports increased to Sh2.15 trillion in 2021, up from Sh1.64 trillion the previous year.

Petroleum items, such as super petrol, gasoline, and jet fuel, were the most expensive imports, totaling Sh335.3 billion. Petroleum product imports increased by 12% to 6.4 million tonnes in 2021, according to the KNBS.

Industrial machinery (Sh254.8 billion) and iron sheets are among the main imports (Sh155 billion) as well as animal and vegetable fats (Sh120.8 billion).

Agriculture, on the other hand, had a poor year in 2021, falling to a negative 0.2 percent from 5.2 percent in 2020. Poor rainfall and tea, maize, wheat, and coffee harvests were blamed for the reduction.

Despite the decline, Kenya’s agriculture industry remained significant to the country’s economy, accounting for 22.4 percent of total GDP in 2021.

In 2021, the service sector accounted for more than half of Kenya’s GDP (52.4 percent).

Transport and storage accounted for 11.4 percent of the service industry, followed by real estate (8.9%), repairs, wholesale and retail commerce (7.9%), and other services (7.9%). (24.2 percent).

Taxes, which are a major source of revenue for the government, accounted for 8.2% of total revenue and 20% of GDP in 2021.

Kenya’s inflation rate reached 6.1% in 2021, its highest level since 2018. The inflation rate was 5.4 percent in 2020.

The shilling, Kenya’s currency, traded at an average of Sh109.70 in 2021, up from Sh106.50 in 2020.

The number of public sector employees increased to 923,075 in 2021, up from 884,600 the previous year. There were 1.9 million jobs in the private sector in 2021, up from 1.8 million in 2020.

According to the national bureau of statistics, the growth in the number of employment indicates that the economy is steadily improving.

Kenya’s inflation rate reached 6.1% in 2021, its highest level since 2018. The inflation rate was 5.4 percent in 2020. The shilling, Kenya’s currency, traded at an average of Sh109.70 in 2021, up from Sh106.50 in 2020.

The number of public sector employees increased to 923,075 in 2021, up from 884,600 the previous year. There were 1.9 million jobs in the private sector in 2021, up from 1.8 million in 2020.

According to the national bureau of statistics, the growth in the number of employment indicates that the economy is steadily improving. “The relaxation of different Covid-19 containment measures, together with the roll-out of Covid-19 vaccine, had a favorable influence on economic activity, resulting in decreased unemployment,” KNBS CEO Obudho stated.

In 2021, the tourism sector grew by 50.3 percent, with 1.5 million international visitors visiting Kenya, up from 1 million the previous year.

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