The World Bank, on Monday, November 24, has upgraded Kenya’s 2025 economic growth projection to 4.9 percent, up from its earlier estimate of 4.5 percent, attributing the improvement to a faster-than-expected rebound in the construction sector.
In its latest Kenya Economic Update, the lender highlighted stable inflation, a steady exchange rate, and record-high foreign reserves as key factors supporting household incomes and private investment. While medium-term growth is expected to lift real per capita income, the World Bank cautioned that the impact on poverty reduction will remain limited unless growth translates into better-quality jobs and higher earnings, particularly for low-income households.
GDP per capita is forecast to rise by 2.5 percent in 2025 and 3.0 percent through 2026–2027, with the international poverty rate projected to ease to 43.2 percent in 2026. World Bank country director Qimiao Fan said Kenya is at a pivotal juncture, noting that policy choices made now will shape not just the pace of growth but also its inclusiveness and sustainability.
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