The macroeconomic stability is expected to continue with inflation expected to remain within the target range at around 5% in 2020 and 2021.

Kenya’s fiscal deficit will also narrow in 2020 and 2021 reflecting favourable weather, continuing foreign direct investment and the benefits of the African Continental Free Trade Agreement (AfCFTA).

However, challenges to Kenya’s economic transformation remain in manufacturing, agriculture, the labour market, and macroeconomic stability.

The Central Bank of Kenya (CBK) is finetuning plans to acquire USD400 million to boost its foreign currency reserves amid World Bank’s projection that the effects of the spread of the COVID-19 Virus are set to shave 5% off the world’s projected economic growth this year.

In a letter to all CEOs of banks in Kenya, the monetary policy regulating institution has asked interested lenders to submit their bids.

Under the plan, BK is set to acquire USD100 million (Ksh10.2 billion) once every month between March and June which will amount to the USD400 million (Ksh40.4 billion).

Speaking during a meeting with Governors on Wednesday, CS Kagwe revealed fruitful discussions with World Bank Vice President for the African Region Hafez Ghanem who relayed commitment from the Washingon headquartered organization that it will release the funds immediately to help Kenya deal with the threat posed by the dreaded disease.