Kenya’s growth undercut by corruption, says World Bank - Semafor

Kenya’s growth prospects are being undercut by corruption and other governance challenges, the World Bank said in a report. The bank warned that graft could raise Kenya’s borrowing needs, adding pressure to an already strained debt servicing burden that swallows roughly 60% of government revenue. It estimated that the country could incur a cost of 2% of GDP a year through higher fiscal deficits.

President William Ruto, who is seeking reelection next year, is looking to assuage frustrations about his government’s handling of the economy and the cost of living, which have spurred street protests in recent years. Kenya’s economy grew 5.1% in the first half of 2026, a higher rate than the same period last year. But persistent deficits and rising debt service costs still leave the economy vulnerable, the World Bank said.