The size of Kenya’s economy is projected to reach the Sh10.1 trillion mark this year, the latest statistical estimates by the International Monetary Fund (IMF) have shown.
This will mark the largest absolute expansion in recent years, with the gross domestic product (GDP) estimated to rise by Sh1.1 trillion from Sh9 trillion in 2018.
In percentage terms, the growth this year is estimated at 5.83 percent, a slight decrease from 5.95 percent last year.
Kenya’s net debt, which has sparked debate over its sustainability, is forecast to stand at Sh5.2 trillion this year compared to Sh4.6 trillion in 2018.
“Massive increases of public debt from where we are will have a negative impact in terms of taxes and interest rates,” Mr Bunyi said.
The forecast Sh10.1 trillion economy would raise the country’s GDP per capita (per person) by 9.2 per cent to Sh205,408 compared to last year’s Sh188,099.
Most of the growth will, however, be captured by the super-rich and individuals in high-paying professions in line with the country’s inequality trends.
Data from the Kenya National Bureau of Statistics (KNBS) shows that 1.9 million Kenyans, representing three-quarters of those working in the formal sector, earn a salary of below Sh50,000. Millions of others are unemployed and have unreliable income sources.
The government is under pressure to expand opportunities for its citizens whose numbers have swollen in recent years. The country’s population is projected to hit 49.3 million people this year, up from 48 million in 2018.
Read the whole article here