Treasury assures stable economy as it projects 5% growth in 2025

Kenya's economy remains resilient with projected growth of 5 percent in 2025, the National Treasury has announced.

Speaking at the Diamond Trust Bank Economic Forum, Treasury Principal Secretary (PS) Chris Kiptoo highlighted key economic indicators, including a drop in inflation and stabilized exchange rate.

He added that interest rates are also easing, with the Central Bank Rate (CBR) cut them to 10.75% and commercial banks lowering lending rates to boost private sector credit.

"Kenya's economy is strong and we have always come out of challenges we face. Inflation has come down. A 2kg packet of Sugar or maize have seen a huge reduction in prices," he said.

"Through the monetary policy in Central Bank, it has been making adjustments to CBR rates and cash rates to try and increase liquidity to the banks and we see banks now increase interest rates."

PS Kiptoo however notes that the budget deficit, projected at Ksh.862.7 billion, remains a concern as revenue collection fell short by Ksh.92.6 billion in January.

"We still need to balance the budget. We have challenges there because of revenue-raising measures to balance our expenditure. But we have seen good progress," Kiptoo noted.