Kenya has been projected to be among the countries that will lead to economic growth in the continent.
According to the Africa Pulse Report by the World Bank, released in April 2024, Kenya will experience an economic growth of 5 per cent this year.
Between 2025 to 2026, Kenya is also projected to experience an economic growth of 5.2 per cent.
The global financial institution explained that the projections were informed by four main factors which include the anticipated inflows of investors into the country.
"In the medium term, growth will be supported by increased investment predicated on restored access to international capital markets that will spur investor confidence and capital inflows, as well as more credit to the private sector through reduced domestic government borrowing," read the statement in part.
Notably, upon assuming office in September 2022, President William Ruto noted that he would reduce the government's domestic borrowing to allow private businesses and individuals to access credit easily.
Local banks were more likely to give credit to the government given the certainty of them recouping the money, unlike the business community, whose risks are higher.
On the other hand, the projected economic growth for Kenya has been attributed to a revamp in the agricultural sector. This will be contributed to by the government's interventions for farmers and the ongoing rainfall.
Likewise, tourism is projected to be a major boost for the Kenya economy even as visa-free entry comes into effect.
Notably, Kenya will also be among the contributors to the economic growth of Sub-Sahara Africa.
"Within the subregion, the East African Community is projected to grow at the fastest pace (5.3 and 5.8 per cent in 2024 and 2025–26, respectively), thanks to robust growth in the Democratic Republic of Congo, Kenya, Rwanda, and Uganda.
"Growth in Côte d’Ivoire, Ethiopia, Kenya, and Nigeria, which comprise about 40 per cent of the region’s GDP, is projected to account for half of the regional growth this year," read the report in part.
