Eastern Africa economic growth 2025‑2026

The UN Economic Commission for Africa’s Office for Eastern Africa released a series of briefings in mid‑2026 outlining the region’s macro‑economic outlook. Both reports project that Eastern Africa will expand at roughly 5.8 % in 2026, well above the continent’s 4.0 % average and significantly faster than the 1.6 % expected for developed economies. Growth is being driven primarily by services – accounting for two‑thirds of Kenya’s output and 40‑45 % of Rwanda, Uganda and Tanzania – while construction also contributes to the upward trend.

Rwanda stands out with a double‑digit expansion in several manufacturing subsectors, suggesting a tentative shift toward a more diversified economy. However, officials caution that fiscal constraints are tightening: interest‑payment burdens consumed 24 % of Kenya’s revenue, 21 % of Uganda’s, 13 % of Tanzania’s and 8 % of Rwanda’s in 2024. Inflation has eased to single‑digit levels in several states, yet debt levels remain high and the region remains vulnerable to external shocks such as disruptions to global trade routes.

UN Resident Coordinator Fatmata Lovetta Sesay stressed that while the growth figures are impressive, they must translate into broader job creation and sustainable development. The reports call for policies that convert the robust expansion into inclusive economic transformation amid an increasingly uncertain international environment.