KAMPALA, Uganda – Uganda has surged ahead in East Africa’s economic race, posting a robust 5.7% real GDP growth in 2024, according to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS). The impressive performance sees Uganda outperform regional heavyweights Kenya and South Sudan, signaling a new phase of economic momentum for the landlocked country.
The survey reveals that Uganda’s economy expanded at a faster pace than Kenya’s, which saw its growth slow to 4.7%—down from 5.7% in 2023. South Sudan, despite its vast oil reserves, managed only a 4.2% growth rate, hampered by ongoing post-conflict recovery efforts and an overreliance on oil exports.
Uganda now ranks third among East Africa’s fastest-growing economies, trailing only Rwanda (7.0%) and Tanzania (6.1%). Burundi also recorded a notable 6.0% growth, highlighting the region’s broad-based recovery and economic resilience.
Kenya Faces Headwinds Despite Market Size
Despite retaining its position as the region’s second-largest economy, Kenya’s growth deceleration in 2024 is attributed to uneven sectoral performance. While financial and insurance services posted an impressive 7.6% growth, sectors such as construction and manufacturing struggled due to inflationary pressures and a tight monetary policy environment. The Central Bank Rate in Kenya averaged 11.3% over the year, dampening credit expansion and investment appetite.
Kenya’s per capita GDP stood at approximately USD 2,296 in 2024, while its trade deficit remained a cause for concern, totaling KSh 1.59 trillion. The widening gap continues to exert pressure on the country’s macroeconomic stability.
Uganda: Economic Resilience and Regional Integration
Uganda’s economic performance has drawn praise from analysts who cite a combination of post-COVID recovery in services, sustained public investment in infrastructure and energy, and notable gains in agriculture and manufacturing. The country is also benefiting from ongoing developments in its nascent oil sector and deepening cross-border trade.
Uganda maintained its lead as Kenya’s top African export destination, receiving KSh 125.9 billion worth of goods in 2024—almost double the exports to Tanzania (KSh 67.2 billion). The trade figures underscore Uganda’s strategic importance within the East African Community (EAC) and its growing role as a key intra-African market.
East Africa Shines Amid Global Uncertainty
The KNBS report places the East African Community’s average growth at 5.4% in 2024—well above the global average of 3.2% and the Sub-Saharan Africa average of 3.8%. This cements East Africa’s position as one of the world’s most dynamic and resilient economic zones, even as other regions grapple with inflation, tight monetary policies, and geopolitical instability.
As Uganda’s economic ascent continues, its role within the EAC—and Africa at large—is likely to become even more pivotal in shaping the continent’s trade, investment, and development trajectory.
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