- EABC CEO RoundTable reveals Kenya’s real GDP growth is projected to remain strong at 5.2%
Tuesday, 25th March 2025:- CEO Roundtable Meeting on East African Integration and Economic Outlook 2025 organized by the East African Business Council (EABC) in partnership with Kenya Private Sector Alliance (KEPSA), Kenya Association of Manufacturers, (KAM) and RSM Eastern Africa revealed East Africa’s economic growth is projected to rise to 5.7% in 2025 an increasing from 5.1% in 2024.
Mr. Ashif Kassam; OGW, Executive Chairman of RSM Eastern Africa, noted that globalization is declining as countries turn inward and aid f lows decrease. He emphasized that East Africa’s economic growth has been driven by public infrastructure investments and urged governments to provide necessary incentives and an enabling environment for the private sector to lead economic growth.
He said, “Kenya’s real GDP growth is projected to remain strong at 5.2%. Kenya’s share of tax to GDP is at 11.5%, inflation is expected to go down to 6.5%, and saving to GDP at 13.5%.”
Mr. Adrian Njau, Ag. EABC Executive Director, stated, “Intra-EAC exports have grown from 17% of total exports in 2017 to 21% in 2023, reaching USD 6.3 billion in 2023, but the share of intra-EAC trade to total trade continues to stagnate at 15%.” He stated Governments of EAC Partner States should fully implement commitments of the Common Market and Customs Union. He highlighted the EAC’s trade potential of $1.9 billion under the AfCFTA market.
In his remarks, Hon. John Lual Akol Akol, Chairperson of the East African Business Council (EABC), highlighted that the EAC is the most integrated economic bloc among the eight recognized Regional Economic Communities (RECs) in Africa, as per the Africa Regional Integration Index (ARII). He urged Governments to eliminate persistent Non-Tariff Barriers (NTBs), ensure uniform application of the EAC Common External Tariff (CET), operationalize the EAC Trade Remedies Committee, harmonize domestic taxes, and remove discriminatory taxes. He also called for the liberalization of air transport services, finalization of trade in services liberalization, and full implementation of EAC commitments by new Partner States.
The Chief Guest, Hon. Sankok Ole David, Member of the East African Legislative Assembly (EALA), urged the private sector to champion advocacy at the EAC Heads of State and Ministerial Council levels and called for political goodwill to remove barriers to intra-EAC trade and investment and accelerate the implementation of agreed commitments, such as the liberalization of air transport services.
The panel session provided invaluable insights into the trade and investment challenges companies face while doing business across the EAC bloc and beyond. Ms. Miriam Bomett, Head of Policy, Regulatory Advocacy & Legal Operations at the Kenya Association of Manufacturers (KAM), called for the implementation of the Common External Tariff (CET), the reduction of production costs for manufacturing, and the enhancement of cross-border trade through regulatory reforms and efficiency improvements.
Rita Kavashe, MBS, Managing Director of ISUZU East Africa, stated that sourcing inputs from across the region has facilitated the development of an integrated East African motor vehicle industry, fostering regional integration. She urged the EAC bloc to reposition to tap into opportunities under the 1.3 billion African Continental Free Trade Area (AfCFTA) market.
Mr. Ashif Kassam stressed that companies must be competitive both locally and regionally to succeed globally. He warned that protectionist measures, such as increasing duties and excise taxes, create disparities in the tax environment across the region. He highlighted double taxation, Rules of Origin, and excise duties as key priorities for the private sector to address at the regional level to boost intra-EAC trade and investment.
Additionally, he underscored the importance of East African CEOs focusing on ESG (Environmental, Social, and Governance) principles and succession planning to enhance sustainability and competitiveness.
Contributing to the discussions, Hon. Nancy Abisai, Member of the East African Legislative Assembly (EALA), emphasized the need to fast-track the EAC Agreement on the Avoidance of Double Taxation. Ms. Waturi wa Matu, Group Associate Director – Trade and Investment at Equity Bank, recommended bottom-up engagements at the country level with Heads of States to advance advocacy priorities effectively.
The RSM Eastern Africa & EABC Outlook 2025 reveals that in 2024, Kenya’s agriculture grew by 3.0%, contributing 22.4% to GDP and employing 40% of the population. In 2025, it is projected to grow by 3.5%, with GDP contribution at 21% and employment at 41%. Manufacturing grew by 3.2% in 2024, contributing 9.2% to GDP and 456,000 jobs. In 2025, it is expected to grow by 3.5%, with GDP at 9.5% and jobs at 500,000. Infrastructure investments of $44 million in 2024 boosted intra-EAC trade by 13.4% to $74.03 billion. Investments are set to rise further in 2025.
The CEO Roundtable provided invaluable insights into the region’s economic trajectory and beyond. Key issues raised by 50 business leaders included the high cost of doing business sustainability – particularly electricity and transport – and climate change to access the EU market, intellectual property rights to scale-up digital tech businesses, consolidating laws and enforcement agencies to reduce regulatory compliance burdens, Tax budget proposals and consultations should involve and be harmonized with a wider range of private sector stakeholders at sectoral, national, and regional levels and combating illicit trade, including counterfeits and substandard goods. Hon. Mwangi Godfrey Maina, Member of EALA, and Mr. Elvis Ogeto, Managing Partner at RSM Eastern Africa, also participated in this RoundTable.
