Kenya launches 2025 Economic Survey

Rashid Naif and Amina Bakari-KNA

The Government has intensified support for Micro, Small and Medium Enterprises (MSMEs) through enhanced access to credit, especially via the Hustler Fund.

This is because MSMEs play a critical role in job creation. The Cabinet Secretary for National Treasury and Economic Planning John Mbadi said the informal sector created 703,000 jobs in 2024 out of the 782,000 created that year.

This data is contained in the 2025 Economic Survey Report which was launched at the Kenyatta International Convention Centre (KICC), Nairobi.

The report provides statistical insights into Kenya’s economic performance in 2024 and outlines key trends shaping the nation’s development trajectory.     

The CS said the economic survey is vital in planning as it provides reliable and crucial data in policymaking, noting that no meaningful economic policy, whether fiscal or climate-related can be crafted without robust statistics.

“This report serves as a compass for policy makers, researchers, investors, and the general public to understand and navigate our economic landscape,” Mbadi stated.  

The CS acknowledged that while the government has projected a growth rate of at least 5.3 per cent for the 2024/25 financial year, actual performance fell short due to the 2024 finance protests and climate-induced disasters which included prolonged drought and recent floods.

According to the survey report, Kenya’s Gross Domestic Product grew by 4.7 percent in 2024, compared to a revised growth of 5.7 per cent in 2023.

The growth, albeit slower than the previous year, was largely supported by activities in agriculture, forestry and fishing of 4.6 per cent, financial and insurance activities 7.6 per cent, transport and storage 4.4 per cent and real estate at 5.3 per cent.

He remained optimistic about the country's economic resilience, highlighting Kenya’s diversified economy as a key buffer against global and domestic shocks.

“We either continue with business as usual and risk economic collapse, or we take bold action now,” the CS emphasized.

He at the same outlined the government's efforts to rationalize spending and enhance revenue collection. He said projected revenue for the 2025 financial year has been revised down to Sh3 trillion, while the total expenditure is now estimated at Sh4.2 trillion, down from over Sh4.3 trillion.

The survey also shows a drop in inflation from 7.7 per cent in 2023 to 4.5 per cent in 2024. The Kenyan shilling has also appreciated against the US dollar from Sh159.69 at the beginning of 2024 to Sh129.36 by end of 2024.

Mbadi attributed the drop in inflation to improved macro-economic management and favourable exchange rate movements.

“The 2025 Economic Survey Report is not just a mirror of where we are, it is a roadmap for where we are going,” the CS stated.

In his remarks, the Principal Secretary for Economic Planning Boniface Makokha, emphasized the government’s commitment to data-driven decision-making.

He noted that the Kenya National Bureau of Statistics (KNBS), with support from development partners such as the World Bank and national statistics offices from Europe, has enhanced its capacity to produce high-quality, reliable statistics.

“KNBS is at the forefront of statistical innovation, including the establishment of a new data science lab,” he said.

As the country continues to face complex economic dynamics, both leaders reiterated the need for all stakeholders including the private sector, counties, and development partners to rely on the economic survey and contribute to the national statistics ecosystem.