Drought could negatively affect Kenya’s economy by hitting the agricultural sector, the World Bank has cautioned in a new report.
According to the report, Kenya’s growth could fall from the initial forecast of 5.8 percent to 5.7 percent due to the impact that drought could have on the its agricultural sector which accounts for about one-third of its GDP.
“Risks include drought conditions that could curtail agricultural output, especially if the country’s grain-growing counties are affected,” the bank said.
Coupled with external risks (trade tensions that could affect Kenya’s exports) and difficulties in domestic revenue mobilization, these factors, the bank said, could negatively impact the performances of the East African country this year.
Last week, President Uhuru Kenyatta announced that the country’s economy should grow to 6.3 percent this year owing to investments in the government’s big four agenda, which seeks to, among others things, deliver 500,000 affordable new housing units for Kenyans.