NAIROBI, Kenya, Mar 12 – Kenya’s economy is set for a steady expansion in 2025, with GDP projected to grow by 4.7 percent year over year, according to the latest Economic Outlook 2025 report by the Mastercard Economics Institute.
This growth outpaces the global average of 3.2 percent, underlining Kenya’s economic resilience amid shifting global trends.
Khatija Haque, Mastercard Chief Economist, noted that a strong remittance ecosystem and high female labor force participation are among the key drivers of this economic growth, bolstering household incomes and consumer spending.
“Kenya’s economic outlook for 2025 highlights its potential for robust growth, underpinned by high remittance inflows, active female workforce participation, and digital transformation. These trends position the country as a leader in fostering inclusive and sustainable development,” stated Hague.
Economic recovery and local reforms are expected to sustain remittance growth through 2025, supported by a growing Kenyan diaspora and the continued digitization of payments.
“Kenya’s robust mobile money infrastructure, led by platforms like M-Pesa, further enhances the efficiency and accessibility of remittances. These platforms facilitate secure and convenient cross-border transactions, reducing costs and empowering underserved communities,” added Hague.
The report further predicts that consumer spending in Kenya will rise by 4 percent in 2025, while inflation is expected to stabilize at 4.8 percent, easing financial pressures on households and businesses.
It noted that Kenya’s labor market stands out for its high female participation rate, which reached 72.5 percent in 2022, one of the highest globally.
This trend is expected to continue in 2025, largely due to job creation in traditionally female-dominated sectors such as healthcare and education, as well as the increasing adoption of flexible work policies.
“Greater female workforce involvement translates into rising household incomes and, subsequently, stronger consumer demand,” the report concluded.
