The April 2023 World Bank Africa’s Pulse report ranked Kenya among the top-performing economies in Africa despite an uneven economic recovery experienced across the continent.
According to the report published on April 4, economic activity remained solid in Kenya because of improved investor confidence supported by the credibility of President William Ruto’s plan to stabilise public finances.
Further, it noted that the country also had a strengthened manufacturing sector that contributed to steady economic growth.
The report lauded Ruto for an increase in Industry services because of his support to the private sector which led to high private sector credit.
“In Kenya, growth of economic activity remained solid at 5.2 per cent in 2022, thanks to strengthened manufacturing, and improved investor confidence.
“They are supported by the credibility of the new administration’s plan to stabilise public finances, and a more general improvement in risk appetite,” the report read in part.
Tea and coffee exports and high pricing for the international market as well as tourism were other factors credited for the steady growth.
“Economic activity in Kenya continues to pick up. Incoming data released on GDP (Gross Domestic Product) show that the economy performed relatively well over the course of last year.
“High international prices for the country’s commodity exports including tea and coffee and a recovery in tourism. The whole economy strengthened for a third consecutive month to 52 in January 2023,” added the report.
Kenya was ranked alongside Côte d’Ivoire, and DRC, whose economic growth remained resilient amid multiple global shocks.
The report came on the backdrop of concerns about financial constraints faced by the government and its inability to pay its employees.
However, Deputy President Rigathi Gachagua on Sunday, April 9, addressed the matter noting that the National Treasury prioritised settling matured loans which caused a delay in the release of salaries for public servants.
Further, the Chairperson of President William Ruto's Council of Economic Advisors David Ndii on Monday, April 10, assured civil servants that the government was trying to fill the gap by borrowing from the domestic market.
Ndii dismissed reports that the government was insolvent dispelling calls for the restructuring of Kenyan debt.
