RUTO has messed up the economy as IMF predicts Uganda and Tanzania will surpass Kenya in the next 2 years – Look! This should worry everyone

Thursday, October 24, 2024 – Kenya’s economy is set to shrink over the next two years, according to the International Monetary Fund (IMF), which has projected slower growth for the country during this period.

In its Global Economic Outlook report, the Bretton Woods Institution projected the country’s Gross Domestic Product (GDP) to drop from 5.6 to 5.0 in 2024 and retain the same level in 2025, depicting a worrying trend for President William Ruto’s administration.

Gross Domestic Product (GDP) is the standard measure of a country’s economic health and is used as an indicator of the living standards of citizens. A country can experience a drop in economic drop when its GDP subsides.

The projected drop in Kenya's GDP could potentially slow down business activities and result in job losses and low production by private and public sectors.

Manufacturers could similarly shut down their facilities due to poor returns on investment.

Kenya joins the list of countries whose GDP projection in the next two years reflects negative change, other countries whose economies were predicted to grow at a slower pace in the coming years include the Democratic Republic of Congo, Ethiopia, and Mali.

However, the IMF forecasted significant economic growth for several African economies including; Nigeria, Angola, Ghana, Senegal, Tanzania, Cameroon, and Uganda.

The projection comes amidst tight lobbying between the government and the IMF for the disbursement of Ksh474 billion ($3.6 billion) which was suspended following Ruto's decision to withdraw the Finance Bill, 2024 that proposed a raft of tax measures in line with the IMF recommendations.

The Kenyan DAILY POST