Kenya’s Economy to Grow by 5.2% in 2024 amidst Challenges

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A new report by the World Bank Group has predicted that Kenya’s economy will grow at 5.2% in 2024, despite headwinds in the country.

The report stated that Kenya’s Gross Domestic Product (GDP) will expand at 5.2% and 5.3% in 2024 and 2025 respectively.

However, growth of private consumption in 2023 is expected to decelerate, leading to a slowdown in the country’s economic activity this year, due to the imposition of higher interest rates aimed at curbing inflation.

The report indicated that investment growth “will show some resilience amid tighter financing conditions, growing by 7.7% in 2023, up from 7% in 2022.”

The report highlights that Kenya is one of the sub-Saharan countries that have shown “solid” and resilient growth in economic activity in a poly-crisis environment.

Despite facing challenges associated with the Covid-19 pandemic and the Russian invasion of Ukraine, the report shows that Kenya’s economic activity remained solid at 5.2% in 2022.

Ravaged by the Covid-19 pandemic, many countries in the sub-Saharan Africa region continue to struggle with rising inflation, forcing central banks to intervene.

The report added:

“On the production side, growth in Kenya reflects strong increases in activity across all sectors in 2023 – with growth accelerating to 3.8% in agriculture and 4.9% in industry. Growth in services will remain resilient at 5.4% in 2023, although down from 7.5% in 2022.”