Kenya must urgently move beyond GDP growth and headline macroeconomic stability and re-anchor fiscal policy around people-centred outcomes. The Government of Kenya must address budget credibility concerns, enforce fiscal discipline, strengthen oversight institutions and fully comply with constitutional and Public Finance Management (PFM) principles. Only when these foundations are in place is when economic growth can translate into tangible improvements in citizens’ livelihoods and resilience.
Kenya’s GDP growth is projected at around 5 percent in the medium-term, signaling macro-economic stability after years of shocks. The continued efforts by the government to implement prudent fiscal and monetary management policies and enhanced domestic revenue mobilization efforts have emerged as some of the key drivers to macro-economic stability in the medium-term outlook. However, this stability is not translating into improved living standards for most citizens. For many Kenyans, macro-economic stability has meant coping with higher costs, decline in real incomes, limited to no employment opportunities and declining access to essential public services.
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