A 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 that East Africa’s economy is projected to grow by 5.7% in 2025 an increase from 5.1% in 2024.
Mr. Ashif Kassam, Executive Chairman of RSM Eastern Africa, noted that globalisation is declining as countries turn inward and aid flows decrease. He emphasised 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. “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, said that 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.
Mr 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 recognised 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, harmonise domestic taxes, and remove discriminatory taxes. He also called for the liberalisation of air transport services, finalisation of trade in services liberalisation, and full implementation of EAC commitments by new Partner States.
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The Chief Guest, David Ole Sankok, 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 liberalisation of air transport services.
The panel session provided 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.
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.
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