East African Economy Set to Grow by 5.1% in 2020, Led by Kenya, Rwanda, and Tanzania

Posted on : Wednesday , 1st May 2024

A recent report by audit, tax, and consulting firm RSM (Eastern Africa) Consulting Ltd, titled "The East African Economic Outlook 2024," unveiled at the EAC CEO Roundtable in Nairobi, forecasts the region to maintain its lead in Africa's growth, with a projected expansion of 5.7 percent in 2025. Kenya is expected to sustain robust real GDP growth at 5.2 percent, with inflation easing to around 6.5 percent in 2024, closer to the central bank's target. 

Mr. Ashif Kassam, executive chairman of RSM Eastern Africa, anticipates the Central Bank of Kenya to maintain the policy rate at 13.00 percent until year-end. The EAC CEO Roundtable, facilitated by the East African Business Council (EABC), Kenya Private Sector Alliance (KEPSA), and Kenya Association of Manufacturers (KAM), highlights the pivotal role of the service sector, particularly in Kenya and Tanzania, as the main driver of regional growth.

The regional economic outlook is further reinforced by the African Development Bank (AfDB), which identifies the East African region as one of the fastest-growing economies. With Kenya among the top-performing economies in Africa and expectations of a strong economic rebound across EAC partner states, the forecast suggests a GDP growth rate ranging from 4.1 percent to 7.2 percent, as stated by Annette Mutaawe Ssemuwemba, EAC Deputy Secretary-General for Customs, Trade, and Monetary Affairs.