Welcome to english.eastday.com.Today is
Follow us @
Contribute to us!

Latest

Shanghai

Business

Culture

China

World

Pictures

Topics

Life

Services

Home >> auto >> Article
Kenyans welcome New Year with hopes of better economic prospects
From:Xinhua  |  2020-01-01 19:58

Video PlayerClose

NAIROBI, Jan. 1 (Xinhua) -- Thousands of Kenyans flocked places of worship and entertainment spots to usher in the New Year, with a majority optimistic that 2020 will offer better prospects.

As they danced, prayed, sang their hearts out and counted when it approaches midnight, Kenyans were relieved that 2019 was over.

The East African nation in 2019 felt the pinch of sluggish economic growth. In quarter three, the economy rose 5.1 percent, down from 6.4 percent in a similar period in 2018, according to the Kenya National Bureau of Statistics (KNBS).

KNBS on Tuesday said the deceleration was mainly on account of suppressed growth in most of the sectors of the economy in particular agriculture, manufacturing, retail and construction.

The slower growth hurt many sectors, with dozens of companies laying off their employees in 2019 to stay afloat.

Several blue-chip firms listed at the Nairobi Securities Exchange (NSE) have recorded a decline in profit blaming the situation to depressed economic activities.

Small businesses, which employ millions of Kenyans were among the hardest hit, with tens of them closing down.

"I am happy 2019 is gone, and I am hopeful that this year will bring better tidings," said Vincent Wesonga, who closed the office for his software start-up in the Nairobi central business district and now operates from his house on the east of Nairobi.

Wesonga had opened the office five years ago and during that period, he employed two people and never failed to pay the 25,000 shillings (250 U.S. dollars) monthly rent.

"The jobs dried up as some of the small companies we were serving closed shop. I had no choice but to take the austerity measures," he said.

Wesonga, like thousands of other small business operators in the country, is much relieved that 2019 is over.

"We had political tranquility yet the economy did not do well. We hope the measures the government has instituted would help create jobs and put money in hands of people in 2020," he said.

One of the measures the government has taken is to make county governments clear pending bills to their suppliers, a majority of them small businesspersons who have not been paid for years.

In places of worship, citizens on Tuesday night did not only pray for tranquility and better health but also for economic progress.

"Our priest led us in praying for the nation and economic growth. We are hopeful things will be much better in 2020," said Annette Achieng, an NGO worker who attended a night vigil at a church in Kitengela, south of Nairobi.

Central Bank governor Patrick Njoroge acknowledged that 2019 was challenging but added that the bank is ready to guide the country's monetary policy in 2020 to better the lives of people.

In an end-year survey released on Dec. 30, 2019, research firm Trends and Insights for Africa (Tifa) noted that most Kenyans (52 percent) said the year was tough for them. Further, some 66 percent of Kenyans said the economy deteriorated in 2019 compared to 2018.

A slow economic growth amid the rising cost of living was isolated in the survey as one of the things that made the year tough. Thousands of youths further continued to feel the pain of unemployment as jobs got scarcer.

Kenya's inflation rose for the fourth straight month in December 2019, rising from 5.56 percent in November to 5.82 percent, with the surge eating into citizen's purchasing power.

In a televised New Year address to the nation, President Uhuru Kenyatta said in 2020, his government will strive to make Kenya a better nation for everyone.

"A key aspect of this quest will be anchored under the Building Bridges Initiative; a process aimed at comprehensively addressing both historical and emerging national challenges," Kenyatta said.

Ernest Manuyo, a business lecturer at Pioneer Institute in Nairobi, noted that the country's economy has been sluggish for the last three years and 2019 seemed to be the climax.

"A slowdown in economic growth means less money in people's pockets as little jobs are also created. Most families, therefore, struggle to survive as it happened last year," he said, adding Kenyans should be cautiously optimistic about 2020 as economic growth does not happen overnight.

Share