Global arms manufacturers banked record revenues of $679 billion (approx. KES 88.27 trillion) in 2024, a 5.9% increase from the previous year, as intense conflicts and rising geopolitical tensions fueled unprecedented demand for weapons and military services.

This surge, detailed in a report released Monday by the Stockholm International Peace Research Institute (SIPRI), marks the highest sales figure ever recorded by the watchdog. The findings underscore a world rapidly rearming, with the wars in Ukraine and Gaza acting as primary drivers for countries to replenish stockpiles and modernize their arsenals.

"Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalised on high demand," noted Lorenzo Scarazzato, a researcher with the institute. While demand is soaring, the report also highlighted that many Western producers face challenges, including production delays, budget overruns on major projects like the F-35 fighter jet, and potential shortages of critical materials.

Europe and US Dominate Surge

The increase was overwhelmingly powered by companies in Europe and the United States. European arms firms saw a collective 13% rise in revenues to $151 billion, largely in response to the perceived threat from Russia. American companies, which account for 39 of the top 100 global producers, grew by 3.8% to a combined revenue of $334 billion.

Key statistics from the SIPRI report include:

• Total 2024 Revenue: $679 billion, a 5.9% increase over 2023.
• US Company Revenues: $334 billion, up 3.8%.
• European Company Revenues: $151 billion, up 13%.
• Russian Company Revenues: $31.2 billion, up 23% despite sanctions.
• Israeli Company Revenues: $16.2 billion, a 16% increase.

The Ripple Effect in Kenya

While the epicenters of conflict are distant, the global arms race has direct implications for Kenya. The nation's own defence budget has seen steady increases, with the proposed allocation for the Ministry of Defence for the 2024/25 fiscal year standing at approximately KES 168-198 billion, aimed at military modernization and enhanced border security. This is part of a broader trend in East Africa, where nations like South Sudan and Uganda have also significantly increased military spending in response to regional instability.

This growing allocation to security raises critical questions about national priorities. As more public funds are directed towards defence hardware, less may be available for essential services like healthcare, education, and infrastructure development. The global surge in demand could also increase the cost and complexity of acquiring modern equipment for the Kenya Defence Forces (KDF), potentially impacting its peacekeeping missions and national security operations.

"European arms companies are investing in new production capacity to meet the rising demand," explained SIPRI researcher Jade Guiberteau Ricard, who also warned that sourcing materials could become a growing challenge. This global supply chain pressure could have a knock-on effect on procurement timelines for nations like Kenya.

As the world spends more on arms than ever before, the challenge for Kenya will be to balance the undeniable need for national security against the urgent demands of economic development and social welfare for its citizens.