Kenya’s economy could shrink by five percent in what will represent a $10 billion (Sh1 trillion) loss of the country’s output if the coronavirus pandemic is not contained, management consultants McKinsey & Company has warned in a new report.
The firm reckons that the dip in gross domestic product (GDP) will be the product of disruption to supply chain for key inputs in machinery and chemicals, a hit on the tourism inflows and exports like flowers and reductions in household and business spending, all of which are critical for economic sustenance and growth.
McKinsey forecasts that economic growth will dip from 5.2 to 1.9 percent — representing a reduction in GDP of $3 billion (Sh315 billion).
