The Mastercard Economics Institute’s Economic Outlook 2025 report highlights key economic trends for the coming year. The global economy has shown resilience despite recent challenges, and 2025 is expected to focus on monetary and fiscal policy adjustments, stabilizing growth, and inflation rates.
Kenya’s Economic Outlook
Kenya’s economy is set to grow by 4.7% in 2025, outpacing the global average of 3.2%. Consumer spending is expected to increase by 4%, while inflation is projected to stabilize at 4.8%, easing pressure on households and businesses. Growth is fueled by strong remittance inflows and high female workforce participation, which drive household incomes. The country also benefits from digital innovation and regional trade integration.
Khatija Haque, Mastercard’s chief economist for EEMEA, emphasizes that these factors position Kenya as a leader in inclusive and sustainable development. Shehryar Ali, Mastercard’s Senior VP for East Africa, highlights Kenya’s rapid digital transformation, calling it the “Silicon Savannah” and pointing to innovations like tokenization, wearables, and contactless payments.
Key Findings
Pricing Trends
Globally, inflation has slowed but remains high. Kenya’s 4.8% inflation rate in 2025 aligns with global patterns. This offers stability for consumer spending in essential areas like food, healthcare, and education. However, lingering price pressures continue to influence spending habits, leading consumers to choose more affordable products.
Remittances and Migration
Migration plays a significant role in Kenya’s economy. While it leads to some human capital loss, it also brings high remittance inflows, which support households and drive economic resilience. In 2023, remittances made up 3.9% of Kenya’s GDP, up from 2.3% before the pandemic. Kenya’s mobile money ecosystem, especially platforms like M-Pesa, makes cross-border transactions faster, cheaper, and more accessible.
The Rise of the SHEconomy
Women’s workforce participation has surged globally, and Kenya is no exception. In 2022, 72.5% of Kenyan women participated in the labor force, one of the highest rates worldwide. Growth in healthcare, education, and remote work has created opportunities for women, boosting household incomes and driving economic growth.
The Economic Outlook 2025 draws on public and proprietary data, including Mastercard’s sales insights. Kenya’s strong remittance ecosystem, high female labor participation, and digital advancements position it well for stable and inclusive economic growth in 2025.
