Key View

• At Fitch Solutions, we forecast that Kenya’s real GDP growth will slow markedly from 5.4% in 2019 to 1.1% in 2020, as the Covid-19 pandemic weighs on external demand and domestic economic activity.
• We expect real GDP growth to rebound to 4.2% in 2021, as economic conditions normalise, and monetary and fiscal stimulus feed through

Key View

• Moves towards 5G deployment in Kenya have been driven by a combination of support from a forward-looking regulator and investments by service providers.
• Initial deployments will target high-value opportunities in the retail and enterprise segments.
• Key use cases will be in fixed wireless broadband, with mobile uptake set to

Key View

• Kenya’s construction sectors’ competitive landscape is characterised by a significant presence of Chinese contractors occupying 60% of the construction roles in the sector.
• Kenya’s infrastructure projects are funded primarily by development banks, along with a notable presence of Exim Bank of China. In an attempt to diversify the

Key View

• Operators are focused on 5G as a fixed-wireless substitute to wireline connections, but we see uptake for mobile services accelerating in the medium term.
• Heavy industries, namely mining and agribusiness will see strong use-cases for 5G toward the long term.

Australia has been one of the few Asian markets to have launched 5G

Key View

• We at Fitch Solutions forecast average inflation in Kenya of 6.5% in 2020 and 6.2% in 2021, up from 5.2% in 2019.
• Our core expectation is for inflation to remain within the Central Bank of Kenya’s 2.5-7.5% target range, although price growth faces upside risks owing to potential food supply constraints and a weakening currency.

Key View: We believe that the rapid development of a textile and garment producing hub in East Africa, combined with a strong demographics profile and expanding income growth, will boost the region's clothing and footwear sector.

Spending on clothing and footwear in the East Africa region will perform particularly well over the medium term

Key View

• Removal of the cap on Kenya's commercial bank lending rates, alongside monetary stimulus will aid vehicle demand, especially new vehicles.
• Strong economic growth will provide a solid foundation for vehicle demand.
• An increased supply of used vehicles will likely suppress prices, which will further increase the demand for