List of East African Countries, Their Debt Ratio to GDP and Inflation Rate in 2025
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at .
Kenya is among the leading East African countries with the highest projected GDP growth in 2025.
Source: UGC
Speaking during the release of Deloitte Kenya Budget 2025/26 Highlights in June, Gladys Mukami, Partner, Strategy, Risk, and Transactions, shared that the region's GDP is projected to grow at 6.3% in 2025.
Mukami noted that East Africa is expected to be the continent’s top economic performer in 2025, supported by increased Foreign Direct Investment (FDI) inflows in the region, government spending on infrastructure and increased intra-trade.
"The average GDP growth rate for East Africa is expected to slightly accelerate to 6.6% in 2026, with regional integration playing a crucial growth driver role," said Mukami in the event attended by .
The cost of living in the East African region is expected to remain moderate in most countries.
Inflation in Kenya will remain below the standard Central Bank mid-point of 5% while in Ethiopia, it will shoot up to 19.1%.
In June 2025, Kenya's inflation remained at 3.8% due to the rising cost of basic food items, including sugar.
Source: Getty Images
Deloitte highlighted the East African public debt to GDP ratio at an average of 53.3%, attributed to the rising debt appetite of various countries.
Below is the list of East African countries, their projected GDP growth, inflation and public debt as a percentage of GDP in 2025.
Kenya and Rwanda lead among countries with the highest debt-to-GDP ratio.
| Country | GDP Growth in 2025 (%) | Inflation in 2025 (%) | Public Debt as % of GDP |
| Kenya | 5.0 | 4.5 | 70.0 |
| Uganda | 6.9 | 3.8 | 50.8 |
| Tanzania | 6.0 | 3.4 | 49.5 |
| Ethiopia | 7.2 | 19.1 | 57.6 |
| Rwanda | 6.7 | 6.7 | 75.5 |
| DemocraticRepublic of Congo (DRC) | 5.9 | 6.1 | 16.1 |
Kenya's public debt is projected to grow to KSh 12.5 trillion in 2025 as the government seeks funding to finance the KSh 4.29 trillion budget for the fiscal year 2025/26.
Data from the Central Bank of Kenya (CBK) indicate that public debt hit KSh 11.36 trillion as of March 2025.
This is attributed to increased borrowing, especially from domestic (KSh 6.3 trillion) lenders.
Loan from external lenders, including the World Bank, increased to over KSh 5 trillion.
Source: TUKO.co.ke
