Kenya says economy to grow by 5.2 pct in 2024

The National Treasury of Kenya on Monday projected the country's economy to grow 5.2 percent in 2024 and 5.4 percent in 2025.

NAIROBI, Sept. 17 (Xinhua) -- The National Treasury of Kenya on Monday projected the country's economy to grow by 5.2 percent in 2024 and 5.4 percent in 2025.

In its Budget Review and Outlook Paper, the Treasury said increased agricultural productivity and a resilient services sector would support the growth.

According to the Treasury, favorable weather and productivity-boosting government initiatives will be the main drivers of Kenya's agricultural sector's recovery.

The institution noted that the industrial sector will see growth primarily in manufacturing, largely reflecting reductions in costs of production and easing of exchange rate pressures. The services sector would remain resilient, with reforms in the information and communications technology sector boosting growth in financial services, health, and public administration.

It projected exports would continue to surge, benefiting from the ongoing implementation of trade agreements such as those for regional economic communities and the African Continental Free Trade Area.

The Treasury, however, warned that increased uncertainties in both the external and domestic environments, such as the escalation of geopolitical tensions and potential disruptions in supply chain networks, could negatively impact commodity markets and slow down the expected potential growth.

John Mbadi, cabinet secretary for the National Treasury and Economic Planning, identified escalation in public debt and debt service as among the challenges that would slow down economic growth.

Mbadi noted that in the medium term, the government will continue to pursue a fiscal consolidation policy with the overall aim of reducing fiscal deficits and debt accumulation. ■