World Bank cuts Kenya’s growth forecast on debt, private sector squeeze

A view shows the cityscape on the Nairobi Expressway

The Nairobi cityscape from the expressway on May 7, 2023. 

Photo credit: Reuters

The World Bank has cut Kenya’s growth forecast for this year by half a point from its initial prediction to 4.5 percent, it said on Tuesday, citing high levels of debt, high lending rates and a decline in private sector credit.

Kenya, which is East Africa’s biggest economy, has recorded robust annual growth rates, but high public debt, repayments, economic inequalities and questions on governance have curbed its performance.