Nairobi — Kenya’s economy is currently on a stable footing and is slowly regaining to a normal sort of pace with all leading economic indicators pointing toward recovery, CBK Governor Patrick Njoroge has said.
Njoroge who spoke during a post-Monetary Policy Committee(MPC) briefing noted that the private sector market perceptions survey, CEOs survey, and the survey of hotels conducted ahead of the meeting revealed improved optimism which has persisted since November 2021.
“Kenya’s external position remains strong and has strengthened during the pandemic, we are now coming to a normal sort of pace and quarter four results should confirm this,” said Njoroge.
Ahead of the General election set for August, CBK noted that some respondents remained wary noting that they may adopt a wait-and-see approach ahead of the elections.
Further, he noted that the banking sector remains stable and resilient, with strong liquidity and capital adequacy ratios.
The ratio of gross non-performing loans (NPLs) to gross loans stood at 13.1 percent in December 2021, compared to 13.6 percent in October.
Lending by commercial banks grew by 8.6 percent in the year to December compared to 7.8 percent in October, the highest since February 2021.
Even so, Njoroge noted that credit risk remains high and will continue to remain high until the economy recovers from the economic pressures of Covid-19.
Further, the restaurant and accommodation sector was seen to be steadily recovering with normal numbers being recorded.
“Despite the strains and slight shocks, the economy has done remarkably well as we are still dealing with a health crisis.”
Njoroge called for accelerated vaccination across the country to lead to full recovery of the economy.
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