Kenya’s Economy Grew 5pc Annually Between 2022 and 2025, Treasury PS Says

NAIROBI, Kenya, Nov 4 – Kenya’s economy expanded by an average of 5 per cent annually between 2022 and 2025, outperforming both the global growth average and Sub-Saharan Africa, Principal Secretary for the National Treasury Chris Kiptoo has said.

Kiptoo attributed the performance to improving economic conditions, rising government revenue and increased investor confidence, citing figures presented during the launch of the 34th World Bank Kenya Economic Update in Nairobi on Wednesday.

He said Kenya’s average annual growth of 5 per cent during the three-year period surpassed the global average of 3.5 per cent and Sub-Saharan Africa’s 4.1 per cent.

Government revenue also increased from KSh2.2 trillion in the 2021/2022 financial year to KSh3.2 trillion in the 2025/2026 financial year, reflecting an increase in collections over the period.

Kiptoo further reported that foreign direct investment (FDI) doubled to US$3.2 billion in 2025, which he said pointed to improved investor confidence in the Kenyan economy.

The Principal Secretary represented Cabinet Secretary for the National Treasury John Mbadi at the launch of the economic update held in Upper Hill, Nairobi.

The report highlighted the importance of governance reforms in sustaining economic growth and creating quality employment opportunities.

Despite the reported economic expansion, Kiptoo acknowledged that informality remained a major challenge in the labour market, with 83.8 per cent of employment still concentrated in the informal sector.

He said expanding productive employment opportunities and improving household incomes remained key priorities as the government seeks to translate economic growth into better living standards for Kenyans.

The findings underscore the need for policies that strengthen governance, improve the business environment and support the creation of sustainable jobs.

Kiptoo also acknowledged the World Bank’s continued engagement with Kenya, commending its country team led by Country Director Qimao Fan for providing policy insights and independent assessments of the country’s economic performance.

The 34th Kenya Economic Update provides an assessment of the country’s economic performance and examines policy priorities necessary to sustain growth, strengthen public institutions and expand employment opportunities.

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