The African Development Bank (AfDB) has highlighted Kenya as among the countries in Africa expected to see economic growth in 2024, according to its latest Macroeconomic Performance and Outlook report.
Kenya’s improved economic performance is attributed to increased public investment in key sectors such as manufacturing and services, as outlined in the report.
Additionally, substantial capital input in vital public infrastructure like electricity, transport, and logistics networks is expected to contribute to this growth. AfDB predicts a 5.4 percent growth for Kenya in 2024.
Joining Kenya on the list of African nations poised for positive growth are Burundi, Cote d’Ivoire, Djibouti, Ethiopia, Rwanda, Tanzania, and Uganda.
The report also acknowledges Kenya’s strong recovery in Gross Domestic Product (GDP) in 2023, largely due to the resurgence of the agriculture industry.
However, challenges also loom on the horizon. The 2024 Budget Policy Statement from the National Treasury projects a 5.5% expansion for the economy, up from 4.8 percent in 2022. Yet, the AfDB report highlights the social unrest sparked by the removal of fuel subsidies in Kenya, Angola, Ethiopia, and Nigeria, indicating potential hurdles to progress.
Furthermore, Kenya faces the burden of rising debt, which could impact businesses and raise household item prices.
In 2024 alone, Kenya is set to repay significant loans, including a USD2 billion Eurobond maturing in June, totaling approximately Ksh707.5 billion.
To ensure sustained economic growth, AfDB suggests addressing persistent inflation, alleviating tax burdens, and reforming the global financial aid structure to better suit the financing needs of African countries. These recommendations aim to pave the way for continued prosperity in Kenya and across the continent.
