Treasury Principal Secretary Chris Kiptoo has affirmed Kenya's trajectory towards a stronger and more resilient economy, citing the African Development Bank's (AfDB) latest Economic Outlook Report. The report forecasts Kenya's real GDP growth at a minimum of 5.3% over the medium term.
Speaking after the report’s launch at the AfDB offices in Upper Hill, Nairobi, on July 28, 2026, Kiptoo noted that despite ongoing global economic uncertainties, geopolitical tensions, and tighter financial conditions, Kenya’s economic outlook remains positive.
He highlighted key indicators such as inflation easing to 6.4% in June 2026 and the relative stability of the Kenya shilling as signs of the economy's resilience.
Addressing Fiscal Challenges
Kiptoo acknowledged ongoing fiscal pressures, including limited fiscal space, rising public debt, and the necessity to fund critical development projects. To tackle these, the government is prioritizing:
- Strengthening fiscal discipline
- Mobilizing domestic resources
- Attracting private and institutional capital through innovative financing tools, notably the National Infrastructure Fund
Balancing Growth and Fiscal Consolidation
These remarks come amid government efforts to balance robust economic growth with fiscal consolidation. Treasury officials emphasize strategies aimed at reducing borrowing costs, enhancing debt management, and creating fiscal room for investments in infrastructure and social programs.
The AfDB report also ranks Kenya among the region's better-performing economies, with growth driven by agriculture, services, infrastructure investments, and a recovering private sector.
