The Economy in Kenya

The Economy in Kenya

World Bank Raises Kenya's 2025 Economic Growth Forecast to Nearly 5% The economy is expected to maintain this growth rate over the next two years, according to a World Bank report. This year, growth will exceed the World Bank's May forecast of 4.5%. Kenya's construction industry, like some other sectors, was impacted by concerns about public finances last year but is now showing signs of recovery, the report notes. Generally speaking, economic growth in African countries is expected to be positive in 2025, despite varying regional challenges. Sub-Saharan countries could grow by around 4.0 percent, according to World Bank forecasts, driven by trade, investment, and digitalization. Economies such as Nigeria, Kenya, Ethiopia, and Rwanda, in particular, show growth potential, while other countries like Algeria and Angola are struggling with economic difficulties. The African Development Bank reports an expected real GDP growth rate of approximately 3.9 percent for Africa as a whole in 2025, with 21 countries potentially achieving growth rates above 5 percent. However, challenges such as currency fluctuations, trade tariffs, particularly from the US, infrastructure deficits, and political uncertainties are dampening this potential. Investment remains below the global average, but digitalization and the African Common Market (AfCFTA) are considered key drivers of growth. South Africa is projected to experience rather subdued growth of around 1.0 percent in 2025, negatively impacted by US trade policy and the expiration of trade preferences. Countries like Ghana and Angola are experiencing a slowdown in growth. Currency issues could shift the GDP rankings of individual countries; for example, Nigeria could fall from first to seventh place. In short, Africa is experiencing moderate to solid economic growth overall, with regional differences and challenges. The main drivers of growth are trade, digitalization, and consumer spending. Structural reforms and greater equity capital mobilization are needed to better realize this growth potential. East African Court suspends EU trade agreement. The East African Court has suspended the trade agreement between the EU and Kenya, halting its implementation pending a ruling on the merits of a complaint. The complaint alleges that Kenya's signing of the trade agreement with the EU has harmed the East African Community and its economy. The Court has intervened and suspended the implementation of the agreement until these allegations are examined. Details of the suspension: - The suspension is an interim injunction issued by the East African Court. - It specifically concerns the Economic Partnership Agreement (EPA) that Kenya and the EU signed on December 18, 2023, and which was scheduled to enter into force in July 2024. ... - The Court based its decision on concerns regarding the impact on the integration of the East African Community and its shared economic interests. It suspects that some partner states acted independently, without sufficiently considering the regional bloc's contractual obligations. The context of the agreement - The Economic Partnership Agreement (EPA) aims to facilitate trade between Kenya and the EU by aligning tariffs and trade rules. - However, there are regional concerns regarding the impact on the East African Community (EAC) and whether regional trade agreements and the economic balance within the bloc will be maintained. This has broader regional implications - The Court's suspension of the agreement reflects the growing tensions over unilateral trade agreements by member states, which could undermine regional integration efforts. - It underscores the legal and political importance of coordinated action by EAC states on international trade agreements. This suspension puts the trade agreement between the EU and Kenya on hold until further judicial review to address the economic and legal concerns raised by the EAC and its member states. @TheKenyanWalkStreet @https://www.dw.com/de/afrika-2025-kampf-um-demokratie-und-wachstum/a-70950755 @https://africabrief.substack.com/p/africas-economy-to-grow-39-in-2025 @https://www.gtai.de/de/trade/suedafrika-wirtschaft/wirtschaftsausblick @https://www.bpb.de/themen/afrika/dossier-afrika/552232/wirtschaftliche-entwicklung-in-afrika/ @https://maisafrika.com/de/noticias/ultimahora/africa-onu-preve-crescimento-de-37-em-2025/ @https://www.africaintelligence.com/tags/european-union @https://www.africaintelligence.com/eastern-africa-and-the-horn/2025/11/24/east-african-court-suspends-eu-kenya-trade-agreement,110563973-art @https://x.com/nmchl/status/1993024214522380482 @https://www.eac.int/press-releases/153-legal-judicial-affairs?start=6 @https://www.worldbank.org/en/publication/global-economic-prospects @https://www.eacj.org/wp-content/uploads/2020/04/THE-ROLE-OF-THE-EACJ-IN-INTEGRATION-1.pdf @https://eur-lex.europa.eu/EN/legal-content/summary/economic-partnership-agreement-between-the-eu-and-kenya.html