IMF Revises Kenya’s 2025 Growth Forecast Amid Economic Unrest
Nairobi, May 8, 2025 —
The International Monetary Fund (IMF) has revised Kenya’s projected economic growth for 2025, lowering it from 5.3% to 5.0%. The downward adjustment comes amid growing concerns over domestic fiscal pressures and widespread anti-tax demonstrations that have disrupted economic activity across the country.
In a statement released Wednesday, the IMF highlighted that persistent protests and uncertainties surrounding the government’s revenue collection strategies have contributed to a cooling investment climate and slowed productivity.
“The combination of fiscal tightening, subdued investor confidence, and social unrest has led us to reassess our earlier projections,” the IMF noted.
The Kenyan government is currently under pressure to balance its ambitious development agenda with growing public resistance to tax hikes and spending cuts. Economists warn that unless stability is restored and confidence rebuilt, further economic downgrades could follow.
Despite the revised forecast, the IMF maintained that Kenya’s economy remains resilient and could recover strongly in the latter half of the year—provided structural reforms are implemented and social tensions de-escalate.
