World Bank report ranks Kenya among top performing economies
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World Bank report ranks Kenya among top performing economies amid financial challenges facing the country
World Bank report ranks Kenya among top performing economies amid financial challenges facing the country.
Despite a patchy economic recovery throughout the continent, Kenya was placed among the best-performing economies in Africa in the April 2023 World Bank Africa’s Pulse report.
The report released on April 4 states that economic activity in Kenya remained strong due to increased investor confidence and the legitimacy of President William Ruto’s commitment to stabilize public finances.
It also mentioned that the nation’s improved manufacturing industry supported stable economic growth.
According to the research, Ruto’s support for the private sector and subsequent high private-sector lending contributed to an increase in industry services.
“In Kenya, growth of economic activity remained solid at 5.2 percent in 2022, thanks to strengthened manufacturing, and improved investor confidence.
“They are supported by the credibility of the new administration’s plan to stabilize public finances, and a more general improvement in risk appetite,” the report read in part.
Tea and coffee exports and high pricing for the international market as well as tourism were other factors credited for the steady growth.
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“Economic activity in Kenya continues to pick up. Incoming data released on GDP (Gross Domestic Product) show that the economy performed relatively well over the course of last year.
“High international prices for the country’s commodity exports including tea and coffee and a recovery in tourism. The whole economy strengthened for a third consecutive month to 52 in January 2023,” added the report.
Kenya was ranked alongside Côte d’Ivoire, and DRC, whose economic growth remained resilient amid multiple global shocks.
The report came on the backdrop of concerns about financial constraints faced by the government and its inability to pay its employees.
However, the government addressed the matter noting that the National Treasury prioritized settling matured loans which caused a delay in the release of salaries for public servants.
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