NAIROBI, Kenya, Feb 22 – Kenya’s 2024 economic growth to be slowest in East AfricaKenya’s economic growth will be the slowest in the East African region in 2024, the latest African Development Bank (AfDB) report shows, highlighting the fierce competition that the country’s economy faces from nearby states.
AfDB’s Africa Microeconomic Performance and Outlook 2024 shows that the nation’s growth rate this year will be 5.4 percent, which is lower than Rwanda’s 7.1 percent and Ethiopia’s 6.7 percent.
It will also trail Djibouti, Tanzania, and Uganda, whose economic growths will be 6.2 percent, 6.1 percent, and 6 percent, respectively.
Since 2020, the Kenyan economy has been facing turbulent times amid tough economic challenges, including the COVID-19 pandemic, high inflation, and local shilling instability, among other factors, which have weighed down on Kenya’s economy.
For example, last year, the Kenyan shilling lost its value against the American dollar by over 25 percent, slowing business activities as the cost of imports became expensive.
The nation also grappled with high inflation that hovered above the 6 percent and above range, reducing consumers purchasing power.
However, the local unit has, as of late, rallied against the greenback, offering a sign of relief to importers. For instance, $1 now sells for around Sh150 from a high of Sh160 and above a few days ago.
“Between 2022 and 2023 Kenya recorded a growth consolidation of 4.8 and 5.4 respectively,” the report noted.
Nonetheless, the AfDB data shows that East Africa is set to continue leading Africa’s economic growth as it rises from 5.1 percent in 2024 to 5.7 percent in 2025.
“This is a 0.6 percent acceleration and it reflects an anticipated strong economic performance of countries in this region,” the report stated.
East Africa accounted for the highest number of countries with GDP growth exceeding 5 percent in 2023, the data added.
Across regions, inflation in 2023 was highest in east Africa, at 30.6 percent, driven by 245 percent in Sudan.
“East Africa, aided by deeper regional integration and strategic public spending to improve infrastructure investment, growth is projected to pick up from an estimated 3.5 percent in 2023 to 5.1 percent in 2024 and 5.7 percent in 2025,” said the report.
