(Ecofin Agency) - The World Bank suggests that Kenya could partly cushion the climate-induced shock through a higher annual growth rate and structural transformation of the economy.

Kenya could experience a substantial economic setback, potentially losing up to 7.25% of its GDP by 2050 if decisive measures are not taken to adapt to and mitigate the adverse effects of climate change. The findings were detailed in a report published on Friday, November 17, by the World Bank.

According to the institution, “by 2050, inaction on climate change could result in a real GDP decline ranging from 3.61% to 7.25%." However, the report suggests that the effects of climate disruption on East Africa's largest economy could be partially offset by achieving a higher annual growth rate and implementing a structural economic transformation.

Entitled "Kenya Country Climate and Development Report," the document outlines that the reduction in GDP resulting from climate change could be limited to between 2.78% and 5.3% if the country manages to achieve an average economic growth rate of 7.5% per year until 2050, in alignment with the government's objectives.

Emphasizing that Kenya generates 90% of its electricity from renewable sources such as geothermal wells and hydroelectric power plants, the World Bank recommends increased investments by authorities in water resource management, agriculture, transportation, and the digitization of the economy to minimize the impact of climate change on economic activities.

Like other countries in the Horn of Africa, Kenya has been grappling with the effects of climate change in recent years. Despite its equatorial climate, the nation faces an extended period of drought, with five consecutive rainy seasons experiencing below-normal precipitation levels.