Mastercard’s Insights On Kenya’s 2025 Economic Outlook
The Mastercard Economics Institute has released its annual report ‘Economic Outlook 2025’,
The Mastercard Economics Institute has released its annual report ‘Economic Outlook 2025’, identifying the themes that will shape next year’s economic landscape.
The global economy has managed through a series of shocks admirably over the past few years. The report anticipates 2025 to be defined by shifts in monetary and fiscal policy and a move toward equilibrium rates for growth and inflation.
In Kenya, the GDP in 2025 is projected to grow by 4.7 percent year over year, outpacing the global average which is forecast at 3.2. percent – a modest increase on 3.1percent in 2024. Meanwhile, consumer spending in the country is predicted to rise by 4 percent, and consumer price inflation is likely to stabilize at 4.8 percent, offering much-needed relief to households and businesses.
Economic growth is supported by a robust remittance ecosystem and high female labor force participation, which continues to drive household incomes. Kenya’s economy demonstrates resilience amid global shifts, leveraging digital innovation and regional trade integration to sustain progress.
“Kenya’s economic outlook for 2025 highlights its potential for robust growth, underpinned by high remittance inflows, active female workforce participation, and digital transformation. These trends position the country as a leader in fostering inclusive and sustainable development,” said Khatija Haque, chief economist, EEMEA, Mastercard.
On his part, Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard, said that Kenya’s digital evolution is accelerating at a fast pace, and Mastercard is committed to driving this transformation.
“As the ‘Silicon Savannah,’ Kenya leads in innovation, and we’re enhancing acceptance with tokenization, wearables, and contactless payments. These solutions, along with our first multi-currency prepaid card, streamline payments and empower communities to engage confidently in global commerce,” Ali shared.
