NAIROBI, July — The African Development Bank (AfDB) has unveiled a new economic blueprint for Kenya aimed at unlocking the country’s vast development potential by reforming how it mobilizes and utilizes capital.
The 2025 Country Focus Report (CFR) calls for coordinated reforms to strengthen fiscal, business, natural, financial, and human capital in order to drive inclusive and sustainable economic growth.
Despite facing economic headwinds, Kenya’s economy grew by 4.6% in 2024, outperforming the global average.
Speaking at the launch, Kenrick Ayot of the National Treasury attributed the performance to “sound and deliberate policies” and a “resilient, diversified economy.”
He highlighted key gains, including falling inflation down from 9.6% in 2022 to 3.8% in May 2025 and a stronger Kenya shilling, which appreciated from Ksh159.7 per US dollar in early 2024 to Sh129.3 by May 2025.
The report projects a more robust 5.3% growth in 2025, driven by improved agricultural output, expansion in the services sector, and ongoing implementation of Kenya’s Bottom-Up Economic Transformation Agenda.
However, the report also paints a sobering picture of Kenya’s capital landscape.
George Karacha, AfDB’s Lead Economist for East Africa, noted that Kenya still struggles with high debt, limited financial access, skills gaps, and declining natural capital.
“To unlock Kenya’s capital for development, we must all work differently,”said Karacha.
He called for widening the tax base, boosting informal sector inclusion, expanding credit access, and aligning education with future job markets in green and digital industries.
