NAIROBI, Kenya – Kenya has posted a slight improvement in the World Bank’s 2024 Country Policy and Institutional Assessment (CPIA) for Sub-Saharan Africa, with its overall score rising to 3.9, up from 3.8 in 2023.
Countries are rated on a scale of 1 (very weak) to 6 (very strong) across 16 criteria grouped into four areas: economic management, structural policies, social inclusion and equity, and public sector management.
Economic management leads improvement
According to the report, economic management remains Kenya’s strongest pillar, improving from 4.0 in 2023 to 4.2 in 2024.
The World Bank cited prudent fiscal reforms, stronger market confidence, and debt management as key drivers.
“After a successful Eurobond in February 2024, the shilling appreciated 20 per cent against the US dollar, recovering from a 30 per cent decline, supported by increased remittances, exports and foreign investment,” the report noted.
The improvements highlight Kenya’s progress in maintaining macroeconomic stability despite both domestic and global shocks.
Governance and public sector efficiency remain weak
Despite gains in economic management, public sector management and institutions remained the weakest cluster, retaining a score of 3.6, the lowest among the four categories.
This area assesses property rights, governance, budgetary and financial management, revenue mobilisation, and transparency. Weaknesses in these areas continue to drag on Kenya’s overall institutional performance.
Mixed performance in other areas
- Structural policies — covering trade, financial sector stability, and business regulation — held steady at 3.8, reflecting modest but stable progress. The World Bank noted stronger profitability in the banking sector, which spurred increased lending activities.
- Social inclusion and equity policies declined slightly, from 3.9 in 2023 to 3.8 in 2024. This cluster evaluates gender equality, equitable resource use, social protection, labour policies, and environmental sustainability.
Nonetheless, the lender highlighted improvements in financial access, with mobile money usage reaching 82.3 percent in 2024, supported by digital technology adoption and a narrowing gender gap.
The World Bank findings suggest Kenya is balancing fiscal stability with ongoing structural reforms but continues to face challenges in governance, public accountability, and equity.
While the country’s macroeconomic policies are on a positive trajectory, analysts warn that progress will remain limited unless reforms in transparency, inclusiveness, and institutional efficiency are accelerated.
