Govt says its working on measures to grow the economy in 2020

Govt says its working on measures to grow the economy in 2020

February 15, 2020 0 By mykenyancareers
TREASURY - Govt says its working on measures to grow the economy in 2020
National Treasury headquarters in Nairobi/FILE

NAIROBI, Kenya, Feb 15 – The government of Kenya has said that it will continue monitoring risks that pose a threat to the growth of the economy in 2020.

According to the 2020 Budget policy statement 2020, the Treasury says the government it is mitigating measures to preserve macroeconomic stability and strengthen resilience in the economy.

“The Government is deepening reforms in the financial sector to ensure a stable and strong financial system in Kenya,” reads the statement.

The statement pointed out to the desert locust invasion that struck the country since late 2019 till 2020 will be one of the distractors affecting the country’s economy.

“The locust invasion experienced in different parts of the country will affect agricultural production and food security,” it added.

As of the beginning of February, the number of counties affected by desert locusts has risen from three to 17 in the last three months.

According to the latest data from the Ministry of Agriculture and the Food and Agriculture Organisation, 75 percent of the country has been affected.

The government is now working with FAO and other 600 National Youth Service servicemen to deal with the swarms in six counties that have been the hardest hit.

The treasury further projected that the market would remain exposed to risks arising from public expenditure pressures, such as the wage-related recurrent expenditures and the inevitable climate change.

This will lead to an increase in the frequency of disasters such as landslides, droughts, and destruction of physical infrastructure.

The Kenyan economy grew 5.1 percent, compared with 6.4 percent in the same period in 2018.

In 2020, the treasury projects the economy to further expand by above 6.1 percent in 2020 and 7.0 percent over the medium term.