Official Launch of the Economic Survey 2025.
Cabinet Secretary FCPA Hon. John Mbadi this afternoon presided over the official launch of the 2025 Economic Survey Report.The report provides a comprehensive review of Kenya’s economic performance in 2024 and sectoral trends spanning the 2020–2024 period.
In his remarks, the Cabinet Secretary announced that the country’s Gross Domestic Product (GDP) stood at KSh 16.2 trillion in 2024, reflecting a moderated growth rate of 4.7%, down from 5.7% in 2023. He attributed the slowdown to broader global trends, noting that world GDP growth had similarly eased from 3.3% to 3.2% over the same period.
CS Mbadi, however, pointed to encouraging macroeconomic indicators. Inflation declined significantly from 7.7% in 2023 to 4.5% in 2024, with October recording the year’s lowest rate at 2.7%.
He lauded the stabilisation of food and energy prices and a firming shilling that appreciated from an all-time high of KSh 159.69 to KSh 129.36 against the US dollar by year-end.
On the fiscal front, the CS projected revenue collection for FY 2024/25 to hit KSh 3.1 trillion, translating to a revenue-to-GDP ratio of 19.2%, up from 17.43% the previous year.
Hon Mbadi reaffirmed the government’s commitment to enhancing domestic resource mobilisation, attracting private and foreign direct investment, implementing accrual accounting, and driving public sector digitalization as key strategies for fiscal discipline.
The report revealed that 782,300 new jobs were created in 2024, with 703,700 attributed to the informal sector, especially Micro, Small and Medium Enterprises (MSMEs). CS Mbadi underscored the critical role of MSMEs and outlined government plans to enhance access to affordable credit through the Hustler Fund, while undertaking targeted interventions to formalise and scale the sector.
Looking ahead, Hon.Mbadi expressed confidence in the resilience of the Kenyan economy in 2025, with growth expected to be fuelled by a robust services sector and improved agricultural productivity — supported by favourable weather conditions and government-subsidised farm inputs. He further cited anticipated declines in interest rates and stable oil prices as key enablers of economic expansion.
The CS reaffirmed the government’s commitment to delivering the Bottom-Up Economic Transformation Agenda (BETA), noting that effective implementation of priority value chains — including agriculture, MSMEs, housing, healthcare, and the digital economy — would drive inclusive growth, create jobs, reduce the cost of living, and expand the tax base.
In a nod to the evolving data landscape, CS Mbadi called on the Kenya National Bureau of Statistics to embrace innovations in big data, Artificial Intelligence (AI), and citizen-generated data, while ensuring quality, consistency, and credibility in national statistics.
Present at the launch were Principal Secretary for Economic Planning Dr. Bonface B. Makokha, KNBS Board Chair Dr. Daniel Mwirigi M’Amanja, KNBS Board Members, Director General Dr. Macdonald George Obudho, and representatives of development partners.