Kenya is likely to register a negative economic growth this year due to the Coronavirus pandemic, experts have warned.
Ally Khan Satchu says with disruption in the export sector, declining tourism numbers and low diaspora remittances, growth will be dismal even as official projections show a 3 percent contraction this year.
After registering a five percent average growth in the last ten years, the Kenyan economy is staring at a highly uncertain future.
Major economic activities have been hit by the Coronavirus pandemic.
Tourism sector is down and out this year, exports of horticulture, tea and coffee have slowed as the pandemic subdues demand in key export markets.
Remittances by Kenyans living abroad is also expected to decline significantly as the pandemic whittles economies in the west.
Economist Ally Khan Satchu says, subdued economic activities will see negative growth for the first time in almost 3 decades.
Recession occurs when there is a widespread drop in the spending power of by the consumers and government.
Khan backs government’s cash transfer program for the poor and a financial stimulus package to aid struggling businesses to avert a looming crisis in 2009, at the height of the global financial meltdown, the government launched an ambitious economic stimulus offering casual jobs to unemployed youth and cash transfers to elderly and vulnerable in the society.
Khan is also urging the government to renegotiate loan repayments schedule with lenders to avoid a debt default.