DEFINED BENEFITS FUND PERFORMANCE
Outlook
According to the Central Bank of Kenya, the economy is expected to perform better, leaving behind months of electioneering and uncertainty. However, though Kenya’s economy has been resilient, the multiple recent shocks depict the urgency of improving social protection mechanisms to cushion the most vulnerable households. Against fiscal challenges, persistent inflationary pressures, unpredictable weather patterns, and challenges emanating from global factors, indicators still point to softer but gradual economic recovery.
Outlook
In the latest World Economic Outlook for April 2023 released by the International Monetary Fund, Kenya is expected to register a real Gross Domestic Product growth rate of 5.3pc in 2023 compared to its earlier projections of 5. 1pc. The upward revision is backed on the full reopening of China coupled with expected easing of global inflation, as the Central Banks continue to tighten their monetary policies. Notably, advanced economies are expected to record a 1.2% growth in 2023, a significant decline from the 2.7% expansion recorded in 2022. However, the emerging markets and developing economies are expected to expand by 4.0% in 2023, up from an estimated growth of 3.9% in 2022. Despite the projections, a return of the world economy to the pace of economic growth that prevailed before the shocks in 2022 is elusive. The recent tightening in global financial conditions has hampered the recovery and despite the efforts of the central banks to curb inflation, the road back to price stability could be long.