Uganda has emerged as one of the top-performing economies in East Africa for 2024, registering a 5.7% real GDP growth rate, according to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS). This performance places Uganda ahead of Kenya, which recorded a slower 4.7% growth, a decline from 5.7% in 2023. South Sudan managed only a 4.2% growth rate amid persistent post-conflict challenges and oil dependency. Uganda Times+1ChimpReports+1ChimpReports+1Uganda Times+1

Regional Growth Leaders

Uganda's economic growth was surpassed only by Rwanda and Tanzania, which posted impressive growth rates of 7.0% and 6.1% respectively. Burundi followed closely at 6.0%, signaling renewed economic momentum across the region. ChimpReports+1Prime Africa Channel+1

Factors Behind Uganda's Growth

While the KNBS report does not detail the internal composition of Uganda’s economic performance, analysts attribute the country's resilience to post-COVID recovery in services, steady investment in infrastructure and energy, and growth in agriculture and manufacturing. Uganda also benefits from ongoing oil sector developments and increasing cross-border trade.

Kenya's Economic Challenges

Kenya's deceleration is largely attributed to mixed sectoral performance. While financial and insurance activities grew by 7.6%, key sectors like construction and manufacturing saw subdued activity, compounded by inflationary pressures and a high Central Bank Rate averaging 11.3% in 2024. Despite maintaining the second-largest economy in the region, Kenya's per capita GDP stood at approximately $2,296, and its trade deficit remained high at KSh 1.59 trillion, further pressuring its macroeconomic outlook.

Trade Dynamics

Uganda also maintained its position as Kenya’s top export destination in Africa, accounting for KSh 125.9 billion worth of Kenyan exports in 2024, far ahead of Tanzania (KSh 67.2 billion). The trade ties underscore Uganda’s strategic importance not only as a fast-growing economy but also as a key market within the East African Community (EAC).

Regional Economic Outlook

The EAC bloc recorded a 5.4% average growth rate, well above the global average of 3.2% and even outpacing Sub-Saharan Africa’s 3.8%. This positions East Africa as a resilient economic zone amidst global inflation, tight monetary policies, and geopolitical uncertainties.