Kenya Can Be $200b Economy by 2025

Kenya has seen robust growth in recent years and can grow its gross domestic product from $80 billion to $200 billion by 2025, AllAfrica reported. But it has to grow at an estimated 12% compound annual growth rate, in line with the 11% of 2012-2017. The services sector contributes 47% of GDP—compared to an average of 60-70% in large emerging markets. For services to make up 65% of GDP by 2025, they would have to grow at a stellar 17% CAGR—much higher than the 12% GDP growth. Apart from the traditional service sectors, areas such as the digital economy would reduce the leakages of a cash-based economy and bring more citizens into its organized economy. It would also ensure delivery of state subsidies to beneficiaries. Only 17% of GDP comes from industry, far less than the average 30% in large emerging markets. For the sector to comprise even a 17-20% proportion, it must grow at a 12-14% CAGR.