The KIPPRA report says the growth will be supported by a rebound in consumption and envisaged recovery in all sectors of the economy.

“Notably, the agriculture sector is estimated to grow by 2.3 per cent in 2022 compared to a contraction of 0.2 per cent registered in 2021 caused by the drought experienced in the country,” the think-tank said in its latest edition of the Kenya Economic Report.

The annual report provides the country’s economic performance and prospects for the medium term. It notes that Kenya’s economy is projected to grow on average by 5.3 per cent in the medium term.

It says the easing of the Covid-19 containment measures, as well as the accelerated uptake of vaccines, is contributing to the economic recovery process.

KIPPRA noted that looking ahead, the country faces downside risks, including uncertainty on the dynamics of the Covid-19 pandemic, weather-related shocks that have become frequent and intensive, as well as a surge in commodity prices, worsened by the Russia-Ukraine conflict.

KIPPRA Executive Director Rose Ngugi said the slowdown in the agriculture sector due to drought calls for more investments in irrigation to reduce over-reliance on rain-fed farming.

Ngugi urged the government to implement a growth-oriented fiscal policy with targeted financial support to the services and industrial sectors.

By Fred Odanga.