Shilling stability could cushion Kenya against trade disruptions – ABSA

The outlook projects that Kenya’s GDP will grow at 4.9 percent in 2025.

by JACKTONE LAWI

Business12 March 2025 - 09:30

In Summary

Absa Bank senior economist Phumelele Mbiyo says that despite the projection of a stronger shilling, other global factors beyond Kenya’s control will have to be monitored closely.
“The Kenya shilling is projected to remain stable, supported by robust international financial inflows that have strengthened foreign exchange reserves to near-record levels,” said Mbiyo.

Geopolitical tensions, rising global commodity prices and international trade disruptions pose challenges to Kenya’s economy in 2025, according to the latest Absa Kenya Economic Overview.

These coupled with inflation trends and monetary policy shifts in advanced economies, have been highlighted as key risks to watch out for by businesses in the country.

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