Kenya’s government to target 7.2% economic growth in 2027

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Kenya’s government will target a 7.2% economic growth rate in 2027, a Treasury official said on Friday, a faster rate than last year’s growth of 4.8%.

The growth will be driven by higher productivity in the agriculture sector and small businesses, James Muhati, the principal secretary for planning in the ministry of finance, told an event to launch the government’s medium term development plan.

Authorities in the East African nation are trying to boost growth to create jobs for millions of young people, while also navigating key challenges, such as rising debt repayments.

The government seeks to reduce annual budget deficits in order to reduce debt repayments and create space for much-needed investments.

It cut the deficit to 4.4% of gross domestic product this fiscal year to June 30, 2024, and it plans to cut it further to 3.6% in the 2024/25 financial year, the ministry said.