NAIROBI, April 7 (Xinhua) -- Kenyan businesses are optimistic that the country's economy will rebound in 2021 as the east African nation steps up COVID-19 vaccination, the Central Bank of Kenya (CBK) said in a new survey released on Tuesday evening.
The apex bank said it surveyed banks and other private sector firms, of which 83 percent of respondents showed optimism.
"Their optimism in the survey is attributed to the vaccine rollout, which they expected would help manage the COVID-19 situation in the country, allow easing of travel restrictions, boost confidence and result in a rebound in the local and global economy," said the CBK in the Market Perceptions Survey for March.
Increased government spending on key infrastructure projects, on various COVID-19 mitigation measures like Kazi Mtaani (youth community work) and favorable weather forecast, are other factors that raised the optimism.
"However, risks to this optimism include political noise with the approaching elections, uncertainty due to COVID-19 mutations and concerns with regard to public debt," said the apex bank.
The apex bank observed that they expect increased demand for credit in the coming months, supported by rising business confidence following the vaccine rollout, the government's continued efforts to manage the pandemic, increased spending from pent-up demand and government initiatives to stimulate the economy. Enditem