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Kenya's finance minister lowers 2020 economic growth projection

Credit: REUTERS/NJERI MWANGI

Kenya's economy is expected to grow by 0.6% this year, the finance minister said on Wednesday, lowering the Treasury's previous forecast of more than 2% growth due to a worse than expected outturn for the first half.

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NAIROBI, Nov 25 (Reuters) - Kenya's economy is expected to grow by 0.6% this year, the finance minister said on Wednesday, lowering the Treasury's previous forecast of more than 2% growth due to a worse than expected outturn for the first half.

Like other economies around the world, the East African nation has taken heavy blows from the pandemic, with its second quarter output declining for the first time since the global financial crisis of 2008.

Growth is expected to rebound to 6.4% in 2021, Finance Minister Ukur Yatani told a meeting to start preparations for the government's budget for the next financial year.

"Economic activity has started to show recovery," he said.

The pandemic has also worsened the government's budget deficits, amid a drop in revenue collection due to disruptions for businesses and temporary tax cuts unveiled in April to shore up demand.

(Reporting by George Obulutsa; Writing by Duncan Miriri; Editing by Toby Chopra)

((duncan.miriri@thomsonreuters.com; Tel: +254 20 4991239; Reuters Messaging: duncan.miriri.thomsonreuters.com@reuters.net))

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