NAIROBI/JOHANNESBURG, Aug 20 (Reuters) – Kenya is on track for a more robust economic performance in 2024 than previously projected, despite external pressures such as increased U.S. import duties and global trade instability, President William Ruto announced during a summit in Japan. He stated that the country’s GDP is now expected to rise by 5.6%, up from 4.7% the prior year and exceeding earlier projections of 5.3% by the finance ministry and 5.2% by the central bank. n nRuto made the remarks at the Tokyo International Conference on African Development (TICAD) held in Yokohama, where Kenya and Japan formalized a financing agreement involving a loan denominated in Japanese yen. The arrangement will be supported by credit insurance from Nippon Export and Investment Insurance (NEXI), according to Japan’s foreign affairs department. n nWhile specific terms and interest rates were not revealed, the loan is designed to lower financing costs for Kenya by reducing investor risk through sovereign insurance coverage. This initiative expands on a cooperation framework established in February 2024 between Kenya and NEXI aimed at enhancing financial collaboration. n nAs the largest economy in East Africa, Kenya has been actively pursuing a broader mix of funding channels to sustain infrastructure investments and economic momentum amid shifting global conditions. Other regional economies, such as Ivory Coast, have similarly tapped into Japanese capital markets—issuing a 50 billion yen ESG-focused samurai bond in July. n nJapan has increasingly prioritized economic engagement across Africa, backing Kenyan initiatives in energy, transportation infrastructure, and scientific advancement. However, Kenya’s growth outlook remains exposed to risks including international trade tensions, financial market fluctuations, and climate-related disruptions, as noted by the national finance authority. n nReporting by George Obulutsa; Editing by Duncan Miriri and Bernadette Baum
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Kenya expects faster growth in 2025, signs yen-denominated loan with Japan
NAIROBI/JOHANNESBURG, Aug 20 (Reuters) – Kenya ‘s economic growth this year is expected to exceed official forecasts despite higher U.S. tariffs and other challenges, President William Ruto said at a conference on Wednesday, where Kenya and Japan also signed a yen-denominated loan deal. n nThe East African nation ‘s economy is forecast to grow by 5.6% this year, Ruto said, more than the 4.7% recorded last year. That would surpass forecasts by Kenya ‘s finance ministry and central bank for 5.3% and 5.2% growth, respectively. n nSign up here. n n”GDP (gross domestic product) is expected to grow 5.6% this year, despite global domestic headwinds arising from escalating tariffs and trade disruptions affecting many economies,” Ruto said at the Japan-Africa leaders conference, known as TICAD, in the Japanese city of Yokohama. n nSeparately, Japan and Kenya signed a term sheet for a yen-denominated loan to be backed by Nippon Export and Investment Insurance (NEXI), Japan ‘s Ministry of Foreign Affairs said. n nDetails on pricing and terms of the loan were not disclosed. n nThe deal builds on an agreement signed last February 2024 between Kenya and NEXI to expand financial cooperation, a statement from the Japanese government said. n nNEXI ‘s insurance backing aims to reduce borrowing costs for sovereign borrowers by mitigating risks for investors. n nKenya, East Africa ‘s largest economy, has been seeking diversified funding sources to support infrastructure development and economic growth amid global uncertainties. n nThe push is mirrored in other economies in the region, including Ivory Coast, which raised 50 billion Japanese yen in an ESG-certified samurai bond in July. n nJapan has been working to deepen economic partnerships across Africa. In Kenya, Japan has funded projects in areas such as power generation, road construction and scientific research. n nKenya is on a trajectory of sustained economic growth but faces risks from global trade disputes, market volatility and extreme weather conditions, according to the finance ministry. n nReporting by George Obulutsa; Editing by Duncan Miriri and Bernadette Baum