Kenya Ranked Fastest Growing Economy in Sub-Saharan Africa – World Bank
According to the 2023 poverty and equity assessment by the World Bank regarding Kenya, the nation has surpassed its Sub-Saharan African counterparts in terms of strong economic growth achieved over the last ten years.
Kenya experienced a resurgence after the impact of the COVID-19 pandemic, achieving a growth rate of 7.6%, surpassing the average growth rate in Sub-Saharan Africa.
The report attributes the significant growth mainly to the services sector, which accounted for nearly 70 percent of the overall rise in the country’s economic output.
The report showed that apart from construction, all of the 10 sectors experiencing the most rapid growth between 2012 and 2021 belonged to the service industry.
“The services sector is increasingly becoming an engine of economic growth in Kenya. In the decade to 2021, services activity drove about 70 percent of the total increase in economic output and, of the 10 fastest-growing sectors from 2012 to 2021, all except construction were services,” the report read in part.
During that time frame, the nation effectively converted economic growth into decreasing poverty levels. The poverty rate decreased until the onset of the COVID-19 pandemic.
“In 2019, almost one-third of Kenyans (33.6 percent) were living below the national poverty line, a 13.1-percentage- point decline from 46.7 per cent in 2005/06 (Figure 1). This translated into a decline in the number of poor Individuals,” the report indicated.
The report elaborated that Kenya experienced a significant decline in poverty primarily during the period spanning from 2005/06 to 2015/16.
During this period, there was a 10.5 percentage point decrease in the poverty rate, dropping from 46.7 percent to 36.1 percent. Concurrently, there was a strong increase in Gross Domestic Product (GDP) per capita, growing by 2.05 percent.
Kenya, with the top Human Capital Index (HCI) score in mainland Sub-Saharan Africa, has achieved significant advancements in developing human capital, broadening access to essential services, and making critical investments crucial for fostering inclusive growth.
ALSO READ:
- How not to make a mistake when choosing the best bookmaker in Kenya
- Understanding Gatwiri’s Cause of Death: Unraveling Positional Asphyxiation
- KRA Rules Out Tax Relief on SHIF Deductions
- Understanding Why Married Women Cheat: Common Reasons Behind Infidelity
- Violence Erupts in Mozambique: Three Killed, 66 Injured in Protests Over Disputed Election
The report mentions that the country’s healthcare accessibility has led to marked enhancements in health results, thus playing a role in the accomplishments of human capital.
“For instance, the under-5 mortality rate in Kenya decreased from 74 deaths per 1,000 live births in 2008/09 to 41 deaths per 1,000 live births in 2022, significantly lower compared with its peers,” World Bank revealed.
The report additionally mentions that the enhancement of human capital development in the nation has been influenced by ongoing decreases in households where children are not attending school, alongside a rise in enrollment rates at secondary educational institutions.
“The proportion of households with a primary school-aged child not attending school declined from 17 percent in 2005 to 5 percent in 2021, thanks to the GoK’s efforts in the provision of free primary education,” the report read
Likewise, the report outlines the enhanced availability of fundamental amenities within the nation, resulting in a diminished disparity between rural and urban areas, along with a reduction in the socioeconomic gap between the affluent and the underprivileged.
According to the report, there has been a rise in the proportion of households utilizing better water sources and upgraded sanitation facilities.
Electricity accessibility has notably enhanced in urban regions, yet remains significantly restricted in rural areas.
Kenya Ranked Fastest Growing Economy in Sub-Saharan Africa – World Bank
