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flag Kenya’s 2025 growth forecast raised to 4.9% due to construction rebound from new investments and housing projects.

flag The World Bank raised Kenya’s 2025 growth forecast to 4.9% from 4.5%, citing a rebound in the construction sector that has offset a manufacturing slowdown. flag The recovery is linked to renewed investment and government initiatives, including affordable housing projects and securitized loans backed by a fuel levy, which have restarted stalled construction. flag Despite progress, risks remain, including high public debt, potential loss of U.S. trade benefits under AGOA, and fiscal consolidation. flag The government is negotiating with the IMF for new support, while the World Bank urges reforms to reduce state-owned enterprise dominance and ease foreign investment restrictions to boost long-term growth.

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