Treasury PS Chris Kiptoo discussed Kenya’s economic performance at the Kenya Economic Update launch in Nairobi.
Chris Kiptoo cites higher revenue and foreign investment, but says informal employment remains a major challenge.
Kenya economic growth averaged 5 per cent annually between 2022 and 2025, National Treasury Principal Secretary Chris Kiptoo has said. He said the pace exceeded both global and Sub-Saharan African averages over the period.
Kiptoo spoke during the launch of the 34th World Bank Kenya Economic Update in Upper Hill, Nairobi. He represented National Treasury Cabinet Secretary John Mbadi at the event.
Kenya economic growth outpaces regional average
Kiptoo compared Kenya’s 5 per cent growth with a global average of 3.5 per cent. Meanwhile, Sub-Saharan Africa recorded average growth of 4.1 per cent.
He attributed Kenya’s performance to improving economic conditions, rising government revenue and greater investor confidence. Treasury revenue figures showed collections rising from KSh2.2 trillion in 2021/2022 to KSh3.2 trillion in 2025/2026.
Foreign direct investment also doubled to US$3.2 billion in 2025, Kiptoo said. He cited that increase as a sign of stronger investor confidence in the Kenyan economy.
The economic update assesses Kenya’s performance and identifies policy priorities for sustaining growth. It also examines ways to strengthen public institutions and expand employment opportunities.
Informal employment remains a challenge
Despite the growth figures, Kiptoo acknowledged that informality remained a major labour market challenge. He said the informal sector still accounted for 83.8 per cent of employment.
Expanding productive employment and improving household incomes therefore remained key government priorities, he said. These priorities form part of efforts to turn economic expansion into better living standards for Kenyans.
The update also highlighted governance reforms as important to sustaining growth and creating quality jobs. Its findings emphasised policies that improve the business environment and support sustainable employment.
Kiptoo commended the World Bank’s continued engagement with Kenya, including its policy insights and independent economic assessments. He also acknowledged the institution’s country team, led by Country Director Qimao Fan.
