UK, Japan have entered recession; here's what it means for Kenyans

You may not lose your sleep over the recession in the UK or Japan, but you could scratch your head. [iStockphoto]

The word "recession" is rarely used in Kenya. Instead, the term "bad economy" or "uchumi mbaya" is more commonly heard. Perhaps our policymakers, from the Central Bank of Kenya to the Kenya National Bureau of Statistics (KNBS), prefer to use other terms. However, enough data is available to identify recessions.

During a recession, the economy contracts, and the value of goods and services produced and consumed decreases. One outcome of this is joblessness. When we have such a contraction for two consecutive quarters, it is considered a recession. Using this definition, Kenya has experienced many recessions. Data from KNBS, IMF, Africa Development, and other sources seem to indicate that Kenya's economic growth will be robust for the next four years, remaining above 5 percent. This suggests that a recession is unlikely unless unforeseen events like COVID-19 occur.