Kenya’s Progress Report : Economic Growth, Infrastructure, and Social Development

Kenya continues to make remarkable strides in economic stability, infrastructure development, and social welfare. From reduced inflation to digital transformation, key sectors have witnessed significant improvements, setting the stage for a prosperous future. Here’s a closer look at Kenya’s recent achievements.

Economic Stability

Inflation declined from 9.6% in October 2022 to 3% in December 2024, attributed to:
- Stabilized fuel and food prices.
- Strengthening of the Kenya Shilling.
- Decline in global commodity prices.
The Kenya Shilling appreciated by 19%, improving from Ksh 160.8/USD (Jan 2024) to Ksh 129/USD (Dec 2024).
Foreign exchange reserves increased to USD 10.1 billion in December 2024, covering 5.1 months of imports (up from USD 7.3 billion in December 2023).

Fiscal Performance

Source: Kenya ICT Action Network

Tax revenue collection grew by 11.5% in FY 2024/25, driven by:
- Expansion of the tax base.
- Improved compliance.
- Digitalization of tax processes.
The fiscal deficit is projected at Ksh 831 billion (4.3% of GDP) in FY 2025/26, down from Ksh 862.7 billion (4.9% of GDP) in FY 2024/25.
Fiscal consolidation strategies include:
- Zero-based budgeting to eliminate wasteful expenditure.
- Rationalization of non-essential spending.
- Public-Private Partnerships (PPPs) to finance development projects.
- Implementation of the Treasury Single Account to enhance cash management.

Agricultural Transformation

Source: CSM Technologies and Farmers Review Africa

Agriculture employs 67% of Kenyans, driving economic growth.
Key achievements in 2023/24:
- Maize production doubled to 61 million bags, up from 30 million bags in 2022.
- 6.45 million farmers registered in the Kenya Integrated Agriculture Information System.
- 7 million bags of subsidized fertilizer distributed across 45 counties.
- Ksh 3 billion allocated to modernizing New KCC, increasing milk intake from 100,000 to 220,000 liters per day.
- Milk production increased by 14%, from 4.6 billion liters (2022) to 5.2 billion liters (2023).
- Coffee sector boost:
  - Cherry Advance Fund increased from Ksh 2.7 billion to Ksh 6 billion.
  - 320,000 bags of fertilizer allocated to coffee farmers.
  - Exports projected to rise from 51,000 metric tonnes to 150,000 metric tonnes by 2027.

MSME Development and Financial Inclusion

MSMEs employ 86% of Kenyans, making them essential for economic inclusion.

Source: European CEO and Business Daily

Hustler Fund disbursed Ksh 60 billion by November 2024 to 24.6 million customers.
Repayment rate of 79% recorded in the Hustler Fund.
Ksh 3.3 billion mobilized in savings.
Credit Guarantee Scheme (CGS) disbursed Ksh 6.34 billion to 4,147 MSMEs in 46 counties.
A new SME loan product to be introduced for 2 million borrowers with strong credit history.

Affordable Housing Programme

Source: bomayangu.go.ke

124,000 housing units under construction across 75 sites in 37 counties.
Affordable Housing Act, 2024 enacted to ensure sustainable financing for housing projects.
Boma Yangu Platform:
- 547,000 users registered.
- 52,000 individuals saved Ksh 2.3 billion toward homeownership.
Affordable Housing Programme has created 250,000 jobs.

Universal Health Coverage (UHC)

Source: Sharp Daily & Liaison Group

Transition from NHIF to Taifa Care under the Social Health Authority (SHA).
Establishment of three new health funds:
- Primary Healthcare Fund
- Social Health Insurance Fund (SHIF)
- Emergency, Chronic, and Critical Illness Fund
Over 15 million Kenyans enrolled in Taifa Care.

Digital Superhighway and Creative Economy

Source: Citizen Digital & The Standard

13,712 km of fiber-optic cable laid.
Public Wi-Fi hotspots increased from 40 to 1,262.
20,855 government services digitized, up from 350 in 2022.
Creative Economy Support Bill, 2024, introduced to establish a Creatives Fund.

Kenya’s transformation continues across multiple sectors, ensuring sustainable economic growth, social welfare, and enhanced opportunities for its citizens.