Kiambu Senator Karungo wa Thang'wa has dismissed the latest International Monetary Fund (IMF) rating placing Kenya as Eastern Africa's largest economy.
In a statement released on Wednesday, the senator asserted that the IMF's projection, while a credible economic indicator, did not reflect the actual living standards of ordinary Kenyans.
According to the senator, the $131.67 billion (about Ksh17 trillion at current exchange rates) Gross Domestic Product (GDP) recorded by Kenya, according to the IMF, was just a numerical growth on paper.
"The recent IMF report placing Kenya’s nominal GDP at $131.67 billion, ahead of Ethiopia and Tanzania, is a noteworthy economic indicator," part of the statement read.
"However, while this positions Kenya as Eastern Africa’s largest economy on paper, we must be cautious not to mistake numerical growth for real prosperity. Economic growth must be felt by the people."
He reiterated that a higher GDP did not necessarily mean improved livelihoods, reduced inequality, or better access to services and that it was possible to top regional charts in GDP while Kenyans still struggle to access basic services and a ballooning cost of living, coupled with limited job opportunities.
Furthermore, Thang'wa observed that the GDP per capita was still low, as the benefits of the economic growth were unevenly distributed, thanks to a widening gap between the rich and the poor.
He also attributed most of the growth to the debt-financed infrastructure and sectors that have yet to translate into widespread prosperity.
Ultimately, he called on the government to unify the economic growth benefits by pushing for inclusivity, fiscal sustainability and prioritising its citizens.
"Kenya should aim to lead not just in economic size, but in inclusive growth, fiscal sustainability, and the well-being of its citizens," Thangwa stated.
"It is not enough to be the biggest economy — we must also be the fairest, the most efficient, and the most accountable. Let us measure our success not just by numbers in international reports but by how many lives we uplift here at home."
On Wednesday, April 23, the IMF projected that Kenya's economy would surpass Ethiopia's in 2025, making Kenya the largest economy in the region.
According to the IMF, Kenya’s GDP of $132 billion (about Ksh17 trillion at current exchange rates) in 2025 will be higher than Ethiopia’s $117 billion (about Ksh15.2 trillion at current exchange rates). This marks a rise from $121 billion (about Ksh15.6 trillion at current exchange rates) in the past year, with Ethiopia recording a steep drop from $143 billion (about Ksh18.6 trillion at current exchange rates).
