Kenya’s Economic Growth to Remain Strong in 2024 – World Bank

The Kenya Economic Update, released by the World Bank, projects Kenya’s economic growth to slow down to 5% in 2024.

This moderation is attributed to ongoing fiscal consolidation efforts, tight monetary policy, and fading tailwinds from the agricultural rebound. Despite this, the World Bank characterizes the outlook as “stronger” compared to its previous projections in December 2023.

The bank had earlier estimated Kenya’s GDP to expand by 4.5 to 5.2% in December last year. The improved macroeconomic conditions following the issuance of the February Eurobond have contributed to this outlook.

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The World Bank attributes the growth prospects to service sector resilience and export recovery in 2024.

The bank assumes adequate rainfall, continued fiscal consolidation, and implementation of structural reforms to support growth.

Favourable agricultural harvests, moderate inflation, employment recovery, and modest private sector credit growth are expected to support private consumption. Remittance inflows are projected to remain resilient, supporting household incomes. The external position is expected to remain favourable, supporting macroeconomic stability as global trade improves.