Kenya’s economy is expected to grow by 5.4 per cent in 2025, driven by strong performances in agriculture, services and government interventions, according to the Central Bank of Kenya (CBK).
Governor Kamau Thugge, in a statement on Wednesday, February 05 said agriculture and services would continue to play a critical role in supporting economic growth, with improved weather conditions and ongoing government projects set to boost production.
He added that the government’s fiscal and financial reforms, along with increased public investment, are key to stabilising the economy.
Thugge observed that inflation is expected to remain stable despite global risks, including rising fuel prices and supply chain disruptions.
“The country has maintained a stable inflation trajectory and despite global uncertainties, we expect it to remain steady,” he said.
The Central Bank’s outlook also highlighted ongoing efforts to address economic challenges, such as the global inflationary pressure and domestic issues related to food security.
However, Thugge expressed confidence that the nation’s economic stability would be supported by key interventions, including strategic government spending and sector-specific policies aimed at enhancing resilience.
The CBK report also notes that external factors, including global inflation and the Ukraine conflict, will continue to influence global markets, but Kenya’s economic fundamentals remain strong.
“The government’s proactive measures will provide a buffer against global risks, ensuring that Kenya continues on a steady growth path,” he added.
The economy’s recovery is expected to be further bolstered by investments in infrastructure, manufacturing and the expansion of the digital economy, with the government targeting growth in both rural and urban areas.
