Kenya has made significant political and economic reforms that have contributed to sustained economic growth, social development, and political stability gains over the past two decades. However, its key development challenges still include poverty, inequality, youth unemployment, climate change, continued weak private sector investment and the vulnerability of the economy to internal and external shocks.
Moreover, increasing reliance on imports, elevated commodity prices, high interest rates limiting access to credit, exacerbating debt servicing costs; significant losses and damages due to frequent extreme weather events like the prolonged drought in 2022 and flooding in 2023; weakening shilling against the dollar among other shockers continue to hamper sustained growth.
