World Bank Raises Kenya’s Growth Outlook to 4.9% in 2025
Kenya’s economy is gearing up for a stronger rebound
After initially lowering the 2025 growth forecast to 4.5% due to high debt, tight interest rates, and slow private-sector lending, the World Bank now projects an average growth of 4.9% between 2025 and 2027.
One major engine of this growth? Construction, which is expected to contribute 6.29% to GDP by 2028, signalling rising infrastructure activity and investment confidence.
To keep momentum going, the World Bank is urging targeted tax reforms—including the removal of certain consumption-tax exemptions—to boost revenue, reduce debt pressures, and support more inclusive economic growth.
Kenya’s public debt currently stands at 65% of GDP, making reforms even more crucial.
Kenya’s economic journey continues—stronger, steadier, and full of potential.