Kenya’s economy seems to be making strides despite the raging Covid-19 pandemic that has paralyzed economic activities.
According to the Central Bank of Kenya (CBK) Monetary Policy Committee, the real GDP has grown by 4.9%. CBK’s Governor Patrick Njoroge revealed the news on Wednesday, the 29th of July 2020.
Njoroge further announced that the CBK would retain the Central Bank Rate (CBR) at 7%. According to him, this rate had brought about positive effects on the economy.
“The committee concluded that the current accommodative monetary policy stance remains appropriate, and, therefore, decided to retain the Central Bank Rate (CBR) at 7%,” read the statement in part.
In April, the Monetary Policy Committee (MPC) lowered the CBR to 7%. MPC is responsible for formulating monetary policies in the country. This change in rate was supposed to cushion banks and other lenders, allowing them to offer loans at a lower interest rate.
CBK also registered a drop in the month-to-month inflation rate to 4.9% in June 2020. Previously, the county had recorded a 5.3% inflation rate in May 2020.
Additionally, the country also registered an increase in export activity by 1.7% compared to last year at a time like this.
Tea exports have also gone up by 18.4% owing to the production levels increasing despite the Covid-19 pandemic.
CBK also projected economic activities increasing in the coming months, especially with the government easing restrictions and allowing a near sense of normalcy.
This announcement follows significant participants, the EABL, recording a 39% loss in the financial year ending June 2020. The alcohol firm acknowledged the dip was a result of the strict government measures on alcohol sales and consumption.
During Uhuru’s recent press briefing, he banned the sale of alcohol in bars and restaurants. However, health CS Mutahi Kagwe clarified that this order excluded supermarkets and wines and spirits. He also urged Kenyans to refrain from turning these places and their parking lots to minibars.