Kenya’s GDP growth rate stood at 6%, and its GDP at $69.1 billion in 2016. The IMF forecasts that Kenyan economy will grow at 6%, and the country’s GDP will reach $74.7 billion by 2017. It is expected Kenya’s GDP will grow by an average of 5.9% in 2017-21.

Kenya GDP

Source: IMF World Economic Outlook

The government aims to transform Kenya into a middle-income country. The country’s GDP per capita stood at $1,521 by 2016. However, S&P predicts that the real GDP per capita growth will average 3% over 2017-2020.

Kenya GDP growth (2010-16)

Source: IMF World Economic Outlook

The Kenyan government is planning to increase spending to $22.2 billion in 2017-18 fiscal year, 2.6% increase from the previous year.

The government remains committed to spending heavily on infrastructure projects such as Standard Gauge Railway. The project worth $4 billion will be an important regional trade corridor that will connect Kenya and Uganda. It is predicted that the railway will boost economic growth.

Kenya GDP by sectors (2016)

Source: Kenya National Bureau of Statistics

The Kenyan government aims to reduce the fiscal deficit to 5.2% from 9% of GDP in 2018-19. S&P expects strong economic growth performance will also underpin fiscal consolidation efforts and that government and external debt will stabilize close to or at current levels.

East African countries by GDP (2016)

Source: IMF World Economic Outlook

Kenya has been one of the leading growth hotspot in Africa. It is expected that favorable demographics, growing middle class, resilient tourism sector, and urbanization will be key drivers of Kenya’s economic growth in the medium term. However, the country’s poor infrastructure and security problems still pose short-term risks to Kenya’s economic growth potential.