The World Bank has revised its economic growth projection for Kenya upward, citing a quicker-than-anticipated rebound in the construction industry. As the largest economy in East Africa, Kenya is now expected to expand at an average annual rate of 4.9% from 2025 through 2027, an improvement over the earlier estimate of 4.5%.
Earlier in the year, economic momentum slowed due to flooding, elevated borrowing costs, and weakened business confidence following widespread anti-government demonstrations. However, recent indicators show stabilization: inflation has returned to within the central bank’s target range, the Kenyan shilling remains steady, and foreign exchange reserves have reached unprecedented levels, according to the financial institution.
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Kenya’s economic growth forecast rises
The World Bank lifted its forecast for Kenya’s economic growth, noting a faster than expected recovery in the construction sector. n nEast Africa’s largest economy is now anticipated to grow on average by 4.9% between 2025 and 2027, up from an earlier projection of 4.5%. n nFloods, high interest rates, and subdued business sentiment following anti-government protests contributed to an economic slowdown earlier this year. But inflation is now within target, the currency is stable, and foreign exchange reserves are at record highs, the World Bank said.