By XINHUA

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Kenya's economic growth is projected to slow to 5 percent in 2024 from 5.6 percent in 2023, the World Bank said in a new report released on Wednesday.

According to the 29th edition of the Kenya Economic Update, ongoing fiscal consolidation efforts, tight monetary policy, and fading tailwinds from the agricultural rebound are expected to slow down gross domestic product (GDP) this year.

"Service sector resilience and export recovery in 2024 is expected to boost growth," according to the World Bank's twice-yearly report, which assesses recent economic and social developments and prospects in Kenya and places them in a longer-term and global context.

The global lender said the growth outlook assumes adequate rainfall, authorities' staying on course on the planned fiscal consolidation strategy, and the continuous implementation of the government's structural reform agenda.

Read: Kenya tax plan to hurt business, economic recovery

Alma Nurshaikhova, a senior public sector specialist at the World Bank, said favorable agricultural harvests, moderate inflation, a recovery in employment, and modest growth of credit to the private sector will support growth in private consumption.

Nurshaikhova noted that remittance inflows to Kenya are projected to remain resilient in 2024, providing further support for household incomes.