Publication:
Kenya Economic Update, May 2025

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dc.contributor.authorWorld Bank
dc.date.accessioned2025-07-02T19:10:13Z
dc.date.available2025-07-02T19:10:13Z
dc.date.issued2025-07-02
dc.description.abstractThe global economic context improved modestly in 2024, supported by easing inflation and a rebound in global trade. Kenya’s economy has slowed despite several improving macroeconomic indicators. The external sector showed improvement, driven by recovering exports and rising financial inflows. A tighter monetary policy and moderation in global inflation have contributed to a decline in inflation. Kenya’s fiscal policy challenges are multifaceted and have significant implications for the country’s economic stability and growth. Increased domestic borrowing is crowding out private sector lending. Kenya’s real gross domestic product (GDP) is expected to pick up gradually in the medium term with the external sector also projected to remain stable in the medium term. The economic outlook faces several downside risks, including fiscal challenges, weather, and external shocks. In the context of narrowing fiscal space, growing demand for investment in essential services, and the limited inclusivity of economic growth, there is an urgent need for a more efficient and equitable fiscal policy. Expanding the coverage and adequacy of cash transfers is essential to strengthening the poverty and inequality-reducing impact of Kenya’s fiscal policy.en
dc.identifierhttp://documents.worldbank.org/curated/en/099052625075532839
dc.identifier.doihttps://doi.org/10.1596/43417
dc.identifier.urihttps://hdl.handle.net/10986/43417
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectPOVERTY
dc.subjectDISTRIBUTIONAL IMPACTS
dc.subjectFISCAL POLICY
dc.titleKenya Economic Update, May 2025en
dc.typeReport
dspace.entity.typePublication
okr.date.disclosure2025-07-02
okr.date.doiregistration2025-07-04T02:11:45.081607Z
okr.date.lastmodified2025-06-28T12:02:42Zen
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.docurlhttp://documents.worldbank.org/curated/en/099052625075532839
okr.guid099052625075532839
okr.identifier.docmidP507067-4fc91502-6d07-417d-934e-0accb1359c16
okr.identifier.externaldocumentum40016279
okr.identifier.internaldocumentum40016279
okr.identifier.report201647
okr.import.id7863
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099052625075532839/pdf/P507067-4fc91502-6d07-417d-934e-0accb1359c16.pdfen
okr.region.administrativeEastern and Southern Africa
okr.region.countryKenya
okr.sectorCentral Government (Central Agencies)
okr.sectorPublic Administration
okr.themeFiscal Policy,Inclusive Growth,Public Finance Management,Macroeconomic Model Development,Tax policy,Economic Policy,Economic Growth,Macroeconomic Modeling,Governance and Public Sector Management,Domestic Revenue Administration,Macroeconomic Simulation and Policy Analysis
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicPoverty Reduction::Poverty Diagnostics
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Economic Updates and Modeling