The government will intensify efforts to formalize and support Micro, Small and Medium Enterprises (MSMEs) through enhanced access to credit, especially via the Hustler Fund.
The Cabinet Secretary for National Treasury and Economic Planning John Mbadi said MSMEs played a critical role in job creation, and lauded the informal sector for creating employment to total of 703,000 in 2024 out of the 782,000 created that year.
Mbadi was speaking during the official launch of the 2025 Economic Survey Report held at the Kenyatta International Convention Centre (KICC), Nairobi, a comprehensive document that provides statistical insights into Kenya’s economic performance in 2024 and outlines key trends shaping the nation’s development trajectory.
He said the economic survey is vital in planning as it provides reliable data which is crucial in policymaking, noting that no meaningful economic policy whether fiscal, monetary, or climate-related can be crafted without robust statistics.
“This report serves as a compass for policy makers, researchers, investors, and the general public to understand and navigate our economic landscape,” stated Mbadi.
The CS acknowledged that while the government had projected a growth rate of at least 5.3 percent for the 2024/25 financial year, actual performance fell short due to the 2024 finance protests and climate induced disasters which included the prolonged drought and recent floods.
According to the survey report, in 2024, Kenya’s real Gross Domestic Product grew by 4.7 percent compared to a revised growth of 5.7 percent in 2023.The growth albeit slower than the previous year was to a large extent supported by activities in agriculture, forestry and fishing of 4.6 percent, financial and insurance activities 7.6 percent, transport and storage 4.4 percent and real estate at 5.3 percent.
He however, remained optimistic about the country’s economic resilience, highlighting Kenya’s diversified economy as a key buffer against global and domestic shocks.
“We either continue with business as usual and risk economic collapse, or we take bold action now,” the CS emphasized.
He at the same outlined the government’s efforts to rationalize spending and enhance revenue collection, and announced that the projected revenue for the 2025 financial year has been revised down to Sh3 trillion, while the total expenditure is now estimated at Ksh 4.2 trillion, down from over Sh4.3 trillion.
The survey also shows a drop on inflation from 7.7percent in 2023 to 4.5 percent in 2024, food prices stabilized, with the Kenyan shilling appreciating against the US dollar from Sh159.69 at the beginning of 2024 to Sh129.36 by end of 2024.
Mbadi attributed the drop on inflation to improved macroeconomic management and favourable exchange rate movements.
“The 2025 Economic Survey Report is not just a mirror of where we are, it’s a roadmap for where we are going,” stated the CS.
In his remarks, the Principal Secretary for Economic Planning Boniface Makokha, emphasized the government’s commitment to data-driven decision-making.
He noted that the Kenya National Bureau of Statistics (KNBS), with support from development partners such as the World Bank and national statistics offices from Europe, has enhanced its capacity to produce high-quality, reliable statistics.
“KNBS is at the forefront of statistical innovation, including the establishment of a new data science lab,” he said.
As the country continues to face complex economic dynamics, both leaders reiterated the need for all stakeholders including the private sector, counties, and development partners to rely on the economic survey and contribute to the national statistics ecosystem.
By Rashid Naif and Amina Bakari
