The World Bank has issued a cautiously optimistic assessment of Kenya’s economic performance under President William Ruto, acknowledging progress in key financial indicators but flagging ongoing concerns around job creation and poverty reduction.
In its latest report titled Beyond the Budget: Fiscal Policy for Growth and Jobs, released Tuesday, the Bank noted that while Kenya has made strides in stabilizing its economy particularly with lower inflation, a firmer exchange rate, and stronger foreign reserves these gains have not translated into robust job growth or meaningful poverty alleviation.
According to the report, Kenya’s real GDP growth slowed to 4.5% in 2025, though a modest recovery is anticipated, with projections showing a rise to about 5.0% by 2026–2027. The report attributes the slowdown to a combination of factors: heavy flooding, elevated interest rates, reduced public investment due to fiscal belt-tightening, and dampened investor confidence following the mid-2024 protests.
Despite these hurdles, the World Bank commended the government’s macroeconomic management but warned that economic stability alone is not enough. The report emphasized that more deliberate action is needed to address youth unemployment and ensure that growth is inclusive and poverty-reducing.
The findings land at a time when the Ruto administration is under growing pressure to deliver on its pledges of job creation and economic revival especially as citizens continue to grapple with high living costs and limited opportunities.
