The new International Monetary Fund (IMF) report indicates a positive growth trend for Kenya, with a projected GDP growth of 5.3 percent in 2024. This is a drop from the 5.5 percent forecasted in 2023, lagging behind Tanzania and Uganda.
The report highlights Kenya’s robustness, ranking it third in the East African Region and fifth on the African continent.
Tanzania leads the pack in the report with a GDP growth projection of 6.1 percent, closely followed by Uganda at 5.4 percent.
Rwanda, another member of the East African Community (EAC), is expected to outperform its regional peers with a remarkable growth rate of 6.6 percent.
In terms of fiscal strategy, Kenya plans to reduce net domestic borrowing by the government to 2.1 percent of the GDP in the coming years. This strategic move is intended to pave the way for increased private sector borrowing.
However, current fiscal projections paint a different picture, with net borrowing anticipated to surge to Ksh.451.7 billion, primarily due to strict conditions in the global financial markets.
Despite the optimistic forecast, the World Bank report also lists Kenya, along with countries like Nigeria and Zambia, as nations experiencing currency depreciation, with double-digit percentage declines.
This economic evaluation underscores both the challenges and opportunities that Kenya faces, highlighting the importance of strategic fiscal management and proactive initiatives to foster growth amidst global economic volatility.