Browsing: Economic Growth in Kenya

High Interest Rates
  • Kenya’s National Treasury has been forced to rely on the domestic credit market to finance the budget deficit.
  • In July 2023, the World Bank cautioned Kenya’s government over persistent crowding out of the private sector from the local debt market due to heavy borrowing.
  • In its latest outlook report, the lender says that weaknesses in Sub-Saharan Africa’s biggest economies, Nigeria, South Africa and Angola, will limit the region’s growth in 2024.  

The World Bank has revised Kenya’s growth projection upwards to 5.2 per cent even as it anticipates that in 2024, economic growth will be fueled by a rise in private sector credit in the wake of an expected reduction in local borrowing by the state.

The multilateral lender predicts the country’s growth will reach an average of 5.2 per cent, attributing this positive outlook to diminishing inflationary pressures and improved financial conditions.

This rate marks an increase from the …

SACCOS guaranteed growth under President Ruto's Hustler Fund.

Savings and Credit Co-operative Societies (SACCOS) in the country are looking to tap into the opportunities availed by the nascent Hustler Fund, having been identified as a key vehicle to disburse loans from the Kshs 50B kitty to Kenyans. Inaugurated by President William Ruto, the Hustler Fund is set to launch phase two of the Program in February which will position SACCOS as pivotal players in the initiative.

SACCOS regulated by the Sacco Societies Regulatory Authority (SASRA) will be able to access between Kshs 10 to 100 million. In a consultative meeting with Co-operatives’ leadership under the Co-operative Alliance of Kenya (CAK), Co-operatives CS Simon Chelugui noted that the Co-operative movement is at the core of Ruto’s administration who sees the movement as instrumental in scaling economic growth.

The CS highlighted that SACCOS play a critical role in inculcating and mobilizing a savings culture among the large swathes of Kenyan …