Kenya’s economic prospects have brightened after the World Bank revised its 2025 growth forecast upward to 4.9 percent, citing renewed momentum in the country’s construction sector. The upgrade, which was previously pegged at 4.5 percent, reflects a stronger-than-expected rebound in infrastructure and building activity, according to a World Bank assessment reported by Reuters.
The Bank noted that construction has picked up after earlier financing delays eased, helping counterbalance weaker performance in manufacturing. Reuters also reported that the sector’s recovery is now acting as a stabilising force for Kenya’s broader economic outlook.
Despite the improvement, the World Bank flagged vulnerabilities linked to Kenya’s elevated public debt and exposure to global trade risks. Reuters added that the Bank highlighted the approaching expiration of a major U.S. trade agreement as a potential concern, underscoring the need for structural reforms to strengthen competition and investment conditions.
The revised outlook suggests a cautiously improving trajectory for East Africa’s second-largest economy, anchored by infrastructure activity that continues to play an outsized role in Kenya’s growth story.
