The World Bank has projected Kenya’s economy to grow by 4.6 per cent in 2026, citing improved performance in the industrial and services sectors during the first half of the year.
According to the World Bank’s latest Kenya Economic Update released on November 4, economic growth accelerated to 5.2 per cent in the first half of 2026, compared to 4.6 per cent recorded in 2025.
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However, the institution warned that economic growth could moderate during the second half of the year due to fiscal pressures and external economic uncertainties.
The report identified governance challenges, corruption and inefficiencies in public spending as some of the major obstacles affecting Kenya’s economic potential.
It further revealed that public debt stood at 72.3 per cent of Gross Domestic Product in August 2026, while interest payments consumed approximately one-third of government revenue.
The World Bank also raised concerns over employment, noting that 83.8 per cent of jobs in Kenya remain informal, highlighting the need for more stable and productive employment opportunities.
Despite the challenges, the institution maintained that improving governance, strengthening public financial management and attracting private investment could significantly accelerate economic development.
The report estimates that implementing ambitious governance reforms could increase Kenya’s GDP by up to 20 per cent by 2035.
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