Women are touted to become the key drivers of Kenya’s 4.7 per cent GDP growth in 2025, according to a new report.
The latest Economic Outlook 2025 report by the Mastercard Economics Institute shows that despite the country’s tense political landscape, the growth will outpace the global average.
The global average growth is projected at 3.2 per cent, meaning that Kenya’s economy will remain resilient despite shifting global trends.
Alongside the female workforce, remittances are also projected to play a key role in stabilising the country’s economy.
Mastercard Chief Economist Khatija Haque said that a strong remittance ecosystem and high female labour force are among the key drivers of this economic growth, bolstering household incomes and consumer spending.
“Kenya’s economic outlook for 2025 highlights its potential for robust growth, underpinned by high remittance inflows, active female workforce participation, and digital transformation. These trends position the country as a leader in fostering inclusive and sustainable development,” stated Hague.
In Kenya, the female labour force participation rate stood at 72.5 per cent in 2022, one of the highest rates globally. She points out that there are several potential explanations for this phenomenon.
“One, women’s labour force participation likely reflects the disproportionate job creation in female-dominated sectors, such as healthcare and education.”
“In addition, the rise of remote work and the flexibility it brings tends to help women, who are often still the primary caregivers, as it makes it easier to raise children while working,” added Hague.
The report points out that many of these dynamics will remain true in 2025, with positive implications for the economy due to driving consumption growth by increasing households’ disposable incomes.
Economic recovery and local reforms are expected to sustain remittance growth through 2025, supported by a growing Kenyan diaspora and the continued digitisation of payments.
The latest findings mirror those by ABSA Bank Kenya, which has predicted that the financial sector will play a key role in Kenya’s economic resilience in 2025.
Mastercard says the global economy has managed through a series of shocks admirably over the past few years. The report anticipates 2025 to be defined by shifts in monetary and fiscal policy and a move towards equilibrium growth and inflation rates.
“Kenya’s mobile money infrastructure, led by M-Pesa, further enhances the efficiency and accessibility of remittances. These platforms facilitate secure and convenient cross-border transactions,” added Hague.
