Economy and macroUpdated November 4

World Bank estimates corruption costs Kenya 2% of GDP a year

Corruption and other governance challenges are undercutting Kenya’s growth prospects, the World Bank says. The bank estimates graft could cost the country 2% of GDP a year through higher fiscal deficits and says it could also raise borrowing needs. Debt service already absorbs roughly 60% of government revenue; that is the wider debt-service burden, not a corruption-only cost. Kenya’s economy grew 5.1% in the first half of 2026, faster than in the same period a year earlier, but persistent deficits and rising debt-service costs still leave it vulnerable, the bank says.

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Coverage started November 4