World Bank has ranked Kenya among the fastest-growing economies in Africa in 2023.
The Bretton Woods Institution in its Africa Pulse report published in October, highlighted that Kenya's economy is currently anchored on strong footing despite experiencing some challenges.
"In Kenya, growth remains resilient this year despite political tensions that were partly due to the higher cost of living," read part of the report.
According to the study, Kenya's economic activity is projected to rise to 5 per cent in 2023, a slight increase from 4.8 per cent in 2022.
The organisation attributed the growth to increased productivity in the agriculture sector and an uptick in private consumption.
The financial institution further attributed Kenya's economic growth to factors such as the implementation of sound macroeconomic policies, investments in infrastructure and human capital, and a diversified economic base.
The report revealed that Kenya's Kenya's Gross Domestic Product (GDP) continued to grow at the beginning of the year (2023), rising from 3.3 percent in the last quarter of 2022 to 5.1 percent in the first quarter of 2023.
World Bank's report indicated a positive outlook for Kenya's economy, forecasting continued growth in 2024 and 2025.
Nonetheless, the report indicated a notable 7 percent decline in the value of the Kenyan shilling, leading to increased earnings in key agricultural exports such as tea, flowers, vegetables, and fruits.
Besides the agricultural sector, improvements were also observed in manufacturing and the private sector.
Regarding inflation, the World Bank disclosed that Kenya was strategically adjusting its monetary policies to curb inflation without inflicting undue hardship or job losses, underscoring the importance of a balanced approach.
Additionally, several other African countries are on a positive economic trajectory, including Côte d’Ivoire, Senegal, Niger, and Rwanda.
