Stanbic Bank Economist Highlights Kenya’s Economic Resilience, Growth Outlook and Monetary Policy Impact

Paul Mungai is the Head of Trade and Africa China Banking, Business and Commercial Banking at the stanbic bank

NAIROBI, Kenya — Kenya’s economy remains resilient despite global uncertainties, with growth expected to be supported by improving business conditions, easing inflation pressures and a more accommodative monetary policy environment, according to economist  Mr Paul from Stanbic Bank Kenya.

Speaking on the state of the Kenyan economy, the economist noted that macroeconomic stability, improved investor confidence and policy interventions will remain critical in shaping the country’s economic performance as it navigates domestic and global challenges.

The economist said Kenya continues to demonstrate resilience, with key sectors of the economy contributing to overall growth. Official data shows that Kenya’s real Gross Domestic Product (GDP) expanded by 4.6 per cent in 2025 compared to 4.7 per cent in 2024, supported by positive performance across major sectors including agriculture, construction, financial services and information technology. 

Kenya National Bureau of Statistics

"Paul observed that monetary policy decisions by the Central Bank of Kenya (CBK) have played an important role in supporting economic activity, particularly through efforts to reduce borrowing costs and encourage private sector credit growth.

He said a stable inflation environment provides room for monetary authorities to maintain policies that balance economic growth with price stability. Recent monetary policy measures have focused on supporting credit expansion while keeping inflation within the target range. 

Reuters

According to the economist, lower interest rates could help businesses access affordable financing, stimulate investment and support job creation, especially among small and medium-sized enterprises that form a major part of Kenya’s economy.

However, he cautioned that risks remain, including global market volatility, geopolitical tensions, public debt pressures and uncertainty ahead of the 2027 General Election.

“Kenya’s economic outlook will depend on maintaining policy discipline, strengthening productivity and creating an environment that supports private sector growth,”

The economist said.

He added that sectors such as agriculture, manufacturing, tourism, digital services and financial technology will continue to provide opportunities for economic expansion if supported by effective policies and investment.

Standard Chartered’s economic outlook has also highlighted the importance of investment-led growth and the changing global economic environment, noting that economies will increasingly rely on domestic drivers of growth. 

Stanbic  Chartered Bank

The trade finance expart further emphasized the need for continued reforms aimed at improving competitiveness, attracting investment and expanding opportunities for young people entering the labour market.

As Kenya works towards stronger economic growth, analysts say maintaining fiscal responsibility, supporting businesses and ensuring monetary stability will be essential in sustaining recovery and building long-term resilience.

The latest economic assessment comes as policymakers, investors and businesses continue to monitor Kenya’s growth trajectory, inflation trends and the impact of monetary policy decisions on households and enterprises.