Kenya's economic outlook for 2025 is facing significant challenges as the country grapples with slowing growth and public discontent. President William Ruto had previously expressed optimism about the economy, noting a growth rate of 5.6% in 2023 and a decrease in inflation from 9.6% in September 2022 to 2.8% in November 2024. However, recent data reveals that the GDP growth rate for the third quarter of 2024 fell to 4%, down from 4.6% in the second quarter and a revised 6% in the same quarter of 2023, marking the slowest growth since early 2021 [c0cbe9a1].
The central bank had forecasted a growth rate of 5.2% for this period, but ongoing protests against Ruto's tax plans have contributed to the economic decline. Key sectors such as agriculture, forestry, and fishing managed a modest growth of 4.2%, while construction contracted by 2%, and mining and quarrying experienced a significant drop of 11.1% [c0cbe9a1].
In response to these economic challenges, Ruto's administration has initiated a nationwide livestock vaccination campaign aimed at bolstering the agricultural sector, which is vital for the economy. The government has also focused on an affordable housing program that has created 200,000 jobs and is constructing 400 markets to support local businesses [59d03ec2].
Deputy President Kithure Kindiki has urged the public to remain patient as the government navigates the economic recovery process, attributing some of the difficulties to the lingering effects of COVID-19. He emphasized the importance of unity and support for the administration's efforts to enhance household incomes and manage public debt, which is projected to rise significantly [fa217006].
Despite the government's initiatives, critics have raised concerns about the sustainability of the growth strategy, particularly in light of tax hikes aimed at avoiding default. Ruto has called for public patience as his administration works to combat corruption and increase job opportunities, especially in the health sector [a2ce267c].
As Kenya approaches 2025, the government's focus on economic recovery and development initiatives will be crucial in addressing these challenges and ensuring sustainable growth for all Kenyans, especially in the face of protests and economic uncertainty [c0cbe9a1].