Kilimokwanza.org Report 52

Kenya’s economy in 2024–2025 reflects a period of recalibration marked by stabilization reforms, moderated growth, and sectoral divergence. After volatility in 2023, GDP growth eased to 4.7% in 2024 as tight monetary policy—anchored by a 12.5% CBR—successfully drove inflation down from 7.7% to 4.5%, strengthening macroeconomic stability but constraining credit expansion. Services remained the dominant growth driver, supported by tourism, finance, and ICT, while agriculture recovered on improved rains despite uneven performance across sub-sectors. Industrial activities lagged, with mining and construction contracting under high input costs and regulatory pressures. Fiscal consolidation intensified amid a heavy USD 81 billion public debt, and the smooth settlement of the 2024 Eurobond boosted investor confidence and strengthened the shilling from ~160 to ~129 per USD. Looking toward late 2025, projections indicate growth stabilizing around 4.8–5.2%, driven by easing monetary conditions and infrastructure gains, though risks remain—from AGOA expiry and climate variability to the urgent need for quality youth employment.