National Treasury Principal Secretary Chris Kiptoo has expressed optimism about Kenya's economic prospects, citing a current growth rate of approximately 5 per cent. This growth rate demonstrates resilience amid global economic uncertainties and challenges affecting several African economies. Kiptoo made these remarks at Osinani Catholic Church in Kilgoris, Transmara West. He attributed the performance to government efforts to stabilise the macroeconomic environment, contain inflation, and strengthen the Kenya shilling.
According to Kiptoo, Kenya has outperformed several economies on the continent, many of which are recording growth rates of between 2 and 3 per cent. He noted that the country's 5 per cent growth rate is a significant achievement, laying a foundation for double-digit growth. Kiptoo revealed that Foreign Direct Investment (FDI) into Kenya has doubled over the past four years to reach $3.2 billion, compared to approximately $1.5 billion in 2021.
The government is targeting an increase in foreign investment to $10 billion by 2027, driven by efforts to improve the business environment, settle pending bills, and open up previously restricted economic sectors. Kiptoo cited planned investments by Nigerian billionaire Aliko Dangote, who is expected to establish a major industrial complex in Lamu. This investment is expected to bring $17 billion into the country, creating thousands of jobs for young people and boosting exports.
The proposed investment by Dangote will complement the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor and strengthen Kenya's position as a regional manufacturing and logistics hub. The planned industrial development is expected to support manufacturing, petrochemical production, and fertiliser processing, while creating employment opportunities and expanding the country's export capacity.
Despite the positive economic outlook, Kiptoo acknowledged concerns over Kenya's rising public debt and expenditure. He warned that the government needs to exercise greater discipline in borrowing, cautioning that borrowing must be for high-impact development that can pay for itself. The National Treasury is pursuing fiscal consolidation measures aimed at reducing wasteful expenditure, rationalising state corporations, digitising revenue collection, and expanding the tax base.
Kiptoo assured Kenyans that the government remains committed to reducing the cost of living while sustaining economic growth. He identified agriculture, manufacturing, affordable housing, and the digital economy as key sectors expected to drive job creation, particularly among young people. The government's focus on these sectors is expected to create employment opportunities and improve household purchasing power.
Kiptoo's remarks come amid ongoing discussions about Kenya's economic outlook, public debt sustainability, the cost of living, and the government's efforts to attract investment while maintaining fiscal discipline. The PS emphasised that growth means nothing if it does not create jobs, highlighting the government's focus on sectors that absorb young people.
Key points
- Kenya's economy is expected to achieve double-digit growth driven by improved macroeconomic stability and rising investor confidence.
- The government aims to increase foreign investment to $10 billion by 2027.
- Key sectors driving job creation include agriculture, manufacturing, affordable housing, and the digital economy.
