The World Bank projects that Kenya’s economic growth will drop to 5% in 2024

Kenya’s economy is expected to grow by 5.6% in 2024, down from 5.7% in 2023, according to a new World Bank report that was made public on Wednesday.

The 29th edition of the Kenya Economic Update predicts that this year’s GDP growth will be slowed by continuing attempts at fiscal reduction, strict monetary policy, and waning benefits from the agricultural bounce.

In its twice-yearly report, the World Bank evaluates recent economic and social changes and prospects in Kenya and puts them in a longer-term and global context. “Service sector resilience and export recovery in 2024 is expected to boost growth,” the report said.

According to the global lender, the growth forecast is predicated on sufficient rainfall, the government’s continued implementation of its structural reform agenda, and officials’ adherence to their budgetary reduction plan.

Favorable agricultural harvests, low inflation, a rebound in employment, and a slight increase in loans to the private sector, according to Alma Nurshaikhova, a senior public sector specialist at the World Bank, will boost growth in private consumption.

According to Nurshaikhova, remittance inflows to Kenya are expected to continue to be strong until 2024, supporting household incomes even more.