Kenya’s GDP to Grow by 4.7%, Supported by Digitisation
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Kenya is poised for strong economic performance in 2025, with GDP growth projected at 4.7%, outpacing the global forecast of 3.2%. This steady expansion is driven by digital advancements, increased remittance flows, and a thriving female workforce, positioning the country as a leader in economic resilience and sustainable development.
Steady Inflation and Consumer Spending Trends
Kenyan households can expect some relief as inflation is set to stabilize at 4.8% in 2025, aligning with broader global trends. With price volatility easing, consumer spending is forecast to grow by 4%, particularly in essential sectors such as food, healthcare, and education. However, budget-conscious shoppers will continue to seek cost-effective alternatives for non-essential purchases, reflecting a shift in spending habits.
Remittances and the Digital Economy
Kenya’s economy benefits significantly from remittance inflows, which have grown to represent 3.9% of GDP as of 2023. The continued digitization of financial services, driven by platforms like M-Pesa, is enhancing the efficiency, security, and affordability of cross-border transactions. As global remittances are expected to grow by 3% in both 2024 and 2025, Kenya’s strong mobile money ecosystem will remain instrumental in supporting household incomes and financial inclusion.
Empowering Women in the Workforce
One of Kenya’s standout economic strengths is its high female labor force participation, which reached 72.5% in 2022. This shift mirrors global trends where more women are returning to work, particularly in education, healthcare, and digital services. Additionally, remote work opportunities have provided greater flexibility, allowing women to balance professional responsibilities with caregiving roles. This growing economic participation is boosting household incomes and reinforcing the country’s long-term economic prospects.
Advancing Digital Payments and Financial Inclusion
Kenya’s reputation as the “Silicon Savannah” continues to thrive, with innovation at the core of its economic transformation. Mastercard is actively supporting this digital shift by expanding payment technologies such as tokenization, wearables, and contactless solutions. The introduction of multi-currency prepaid cards is also expected to enhance cross-border transactions, fostering seamless global commerce.
With digital advancements, increased remittance flows, and a dynamic workforce, Kenya’s economic trajectory remains promising, positioning the country as a model for sustainable and inclusive growth in 2025.
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