Treasury Principal Secretary Chris Kiptoo has stated that Kenya remains firmly on course toward a stronger, more resilient and sustainable economy, citing the latest African Development Bank (AfDB) Economic Outlook Report that projects the country’s real GDP growth at at least 5.3 percent over the medium term.

In a statement issued after the launch of the report at the AfDB offices in Upper Hill, Nairobi on Tuesday , July 28, 2026, Kiptoo said the outlook provides an encouraging assessment of Kenya’s economic prospects despite continued global uncertainty, geopolitical tensions and tighter financial conditions.

“The 2026 African Development Bank Economic Outlook Report offers an encouraging assessment of our economic prospects, with Kenya projected to record at least 5.3 percent real GDP growth over the medium term,” Kiptoo said.

He added that inflation had eased to 6.4 percent in June 2026 while the Kenya shilling remained broadly stable, developments he said demonstrate the resilience of the economy.

“These developments reflect the resilience of our economy even as we navigate global economic uncertainty, geopolitical tensions and tighter financial conditions,” he said.

Fiscal challenges

The PS acknowledged, however, that Kenya continues to face significant fiscal challenges, including constrained fiscal space, public debt pressures and the need to finance critical development priorities.

“We are conscious of the challenges before us, particularly constrained fiscal space, public debt and the need to finance critical development priorities,” he said.

To address these challenges, Kiptoo said the government’s priority is to strengthen fiscal discipline, mobilize domestic resources and attract private and institutional capital through innovative financing mechanisms, including the National Infrastructure Fund.

“Our priority is therefore to strengthen fiscal discipline, mobilise domestic resources, attract private and institutional capital through innovative financing mechanisms, including the National Infrastructure Fund.”

Balancing economic growth

The remarks come as the government seeks to balance economic growth with fiscal consolidation following recent debates over revenue measures and public spending.

Treasury officials have maintained that the administration is pursuing a strategy aimed at reducing borrowing costs, improving debt management and creating space for investment in infrastructure and social programs.

The AfDB report places Kenya among the better-performing economies in the region, with growth expected to be supported by agriculture, services, infrastructure investment and continued recovery in private sector activity.