Kenya – As stated by The World Bank on Wednesday, Kenya’s economic growth will decline to 5 percent this year, after a staggering performance in 2023.
The powerhouse country, has faced many burdens brought about by factors such as high inflation, huge public debt, the introduction of various new levies, and tax hikes by the government- as ruled by President William Ruto.
The recovery of the agricultural sector, which followed improving weather conditions, drove 2023’s growth. However, The World Bank went on to report that while Kenya’s real GDP growth had surged last year to 5.6 percent from 4.9 percent in 2022, its expected to see a decline this year.
The report had been released a week prior to Ruto’s government having to follow through with a budget presentation to parliament on June 13. The government is currently projecting a 4.25-trillion-shilling ($32-billion) budget for the tax year which ends June 30, 2025. This was up from 3.6 trillion shillings the previous year.
The country’s public debt in its entirety, totals to around 10 trillion shillings/around 70 percent of its GDP.
Still, World Bank country director for Kenya, Keith Hansen, welcomed Nairobi’s February decision to partially repay a $2-billion Eurobond, which is due to mature later this month. It was, as Keith had stated, “a move that significantly eased the immediate liquidity constraints for the year, instilling a sense of calm in the markets.”
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Compiled by Lauren Petersen
