NAIROBI, Kenya- The Central Bank of Kenya (CBK) has downgraded the country’s projected economic growth for 2025 to 5.2 percent from the earlier estimate of 5.4 percent.
CBK Governor Kamau Thugge attributed the revision to the adverse effects of higher tariffs on trade, including a 10 percent reciprocal tariff imposed on Kenya by the United States in April.
“The projected growth of the economy in 2025 has been revised to 5.2 percent from 5.4 percent, on account of higher trade tariffs,” the CBK governor said in a statement following the Monetary Policy Committee (MPC) meeting.
The adjustment comes as Kenya continues to manage a slowdown that began in 2024.
According to the recently released Economic Survey 2025, the Kenyan economy’s real GDP growth slowed to 4.7 percent in 2024, down from 5.7 percent in 2023.
This deceleration was evident across key sectors, including agriculture and manufacturing.
Despite the challenges reflected in the revised forecast and last year’s performance, the CBK remains optimistic about an economic rebound.
Early indicators suggest improved activity in the first quarter of 2025, supported by the resilience of service sectors and agriculture.
Further, the recovery is expected to gain momentum from projected growth in private sector credit and a rise in exports, factors that are anticipated to underpin Kenya’s economic recovery throughout the year.
