Kenya Shows Economic Resilience, But Sustained Progress Depends on Accelerating Procompetitive Reforms

Kenya’s economy is projected to grow by an average 4.9% between 2025 and 2027, an increase from previous estimate. However, fiscal pressures are intensifying, with the FY2024/25 deficit widening to 5.9% of GDP—above the original 4.3% target—driven mostly by revenue shortfalls and increasingly rigid expenditure structures. Risks of fiscal slippage persist.