Kenya’s economy is projected to expand by 5.4% in 2025, driven by strong performance in agriculture, the services sector, and government initiatives, according to the Central Bank of Kenya (CBK).
In a statement on Wednesday, February 5, CBK Governor Kamau Thugge highlighted that favorable weather conditions and ongoing government projects would support agricultural productivity, while the services sector would continue to be a key contributor to economic growth.
Thugge noted that fiscal and financial reforms, increased public investment, and strategic government interventions are essential in ensuring economic stability.
Despite global risks such as rising fuel prices and supply chain disruptions, he assured that inflation is expected to remain stable due to Kenya’s resilient economic framework.
“The country has maintained a stable inflation trajectory, and despite global uncertainties, we expect it to remain steady,” Thugge stated.
The CBK’s economic outlook also addressed ongoing efforts to tackle challenges related to global inflationary pressures and domestic food security concerns.
While external factors such as the Ukraine conflict and global inflation trends continue to impact markets, Thugge expressed confidence in Kenya’s economic resilience.
“The government’s proactive measures will provide a buffer against global risks, ensuring that Kenya continues on a steady growth path,” he added.
The economic recovery is expected to be further strengthened by investments in infrastructure, manufacturing, and the expansion of the digital economy, with targeted growth in both urban and rural areas.