IMF projects Kenya inflation to rise to 6% in 2026 as growth slows
The IMF’s October 2026 outlook explains how rising oil and food prices could affect Kenya’s inflation, economic growth, imports and household finances.
By Chrispho OwuorThe IMF’s October 2026 outlook explains how rising oil and food prices could affect Kenya’s inflation, economic growth, imports and household finances.
By Chrispho OwuorThe IMF's October 2026 outlook examines how supply disruptions, geopolitical risks and depleted reserves could shape oil prices, inflation and global growth.
By David AbonyoThe survey, conducted between September 15 and 25, 2026, found that housing and roads each received 16.3% when respondents were asked which areas the government had performed best
By Chrispho OwuorIn its Consumer Price Index report released on September 30,2026,the bureau said food prices increased by 9.5 per cent over the year, while transport recorded the sharpest rise at 15.6 per cent. Prices under housing, water, electricity, gas and other fuels increased by 3.2 per cent over the same period.
By David AbonyoThe conflict began on February 28, 2026, and has since expanded beyond direct US-Iran hostilities, with Iran-linked Houthi forces in Yemen and other armed groups becoming involved in attacks affecting regional energy infrastructure and shipping routes. The conflict has pushed oil prices above $100 a barrel amid concerns over supplies through the Strait of Hormuz and alternative export routes
By Chrispho OwuorThe survey was conducted through face-to-face interviews with 2,048 randomly selected adults across all 47 counties between 13 and 22 June 2026.
By David AbonyoFood prices remained the biggest source of pressure after rising by 9.0 per cent in August compared with the same month last year. Transport costs recorded an even sharper increase, rising by 15.7 per cent over the same period.
By Maureen KinyanjuiIsrael responded with an extensive air campaign and a ground offensive in Lebanon. Lebanese authorities say more than 4,300 people have been killed in the fighting, adding to the pressure on an economy already weakened by years of financial problems.
By Maureen KinyanjuiThe Market Perceptions Survey found that businesses remained broadly optimistic about the country’s economic prospects over the next 12 months, with lower lending rates, recovering tourism and construction, stronger private-sector credit and macroeconomic stability expected to support growth
By Chrispho OwuorThe average cost of a kilogramme of sifted maize flour dropped by 44 cents, from Sh160.22 in June 2025 to Sh159.78 in June 2026.
By Bradley BosireSpeaking during the launch of the National Beyond 2030 Conversation on Wednesday, Kindiki said Kenya’s foreign exchange reserves had risen to $15.1 billion, the highest level in the country’s history, while inflation had moderated from 9.6 per cent to below six per cent.
By Bradley BosireThe President said the country's foreign exchange reserves had also recorded strong growth, rising from $5.7 billion, which he said was enough to cover about two and a half months of imports, to $15.3 billion, representing six and a half months of import cover.
By Maureen KinyanjuiRuto said the government had stabilised the Kenyan shilling, increased foreign exchange reserves to more than $15 billion, equivalent to 6.5 months of import cover, while also reducing inflation and lowering borrowing costs.
By Bradley BosireThe June 2026 report indicates that several commonly used household items registered price increases between May and June, making routine spending more expensive for consumers.
By Maureen KinyanjuiFood and non-alcoholic beverages recorded an annual inflation rate of 8.6 per cent, while transport costs increased by 16.1 per cent. Housing, water, electricity, gas and other fuels registered a 3.4 per cent rise over the same period.
By Maureen KinyanjuiThe economist warned that rising statutory deductions from workers' incomes, coupled with increasing production costs for businesses, are suppressing consumer spending and limiting economic activity
By Chrispho OwuorMbadi pointed to ongoing interventions aimed at shielding households from fuel-related shocks, including stabilisation measures introduced in April 2026.
By David AbonyoThe Central Bank of Kenya said rising global inflation risks, driven mainly by the conflict in the Middle East, continue to influence domestic price trends and justify keeping the rate unchanged.
By Bradley BosireThe survey indicates that concerns over taxes are increasingly intertwined with wider cost-of-living pressures
By Chrispho OwuorTIFA notes that although more people are beginning to report better conditions, the gains remain limited and have not yet changed the wider experience of most families.
By Chrispho OwuorIn a communiqué issued after the talks, the group highlighted pressures on energy, food and fertiliser supply chains linked to ongoing geopolitical tensions, noting that these risks are “particularly affecting the most vulnerable countries.”
By David AbonyoFormer LSK President Faith Odhiambo says rising fuel prices and fears of a nationwide transport strike could deepen Kenya’s economic and social crisis, straining households, transport, trade and access to essential services.
By Chrispho OwuorThe Chairperson of the Commission, Mahmoud Ali Youssouf, expressed “deep concern over the renewed escalation in the Gulf region,” pointing to recent attacks attributed to Iran targeting neighbouring states such as the United Arab Emirates.
By Chrispho OwuorUN Secretary-General António Guterres warns that curtailments to navigation in the Strait of Hormuz are disrupting energy, transport, manufacturing and food systems. He outlines scenarios that could raise inflation, cut growth and increase poverty and hunger.
By Chrispho OwuorEcobank’s Mohamed Souleymane says the US Federal Reserve’s decision to hold rates at 3.5%–3.75% offers short-term stability for Kenya. He warns that Middle East tensions and oil volatility could still pressure inflation, currencies and fuel costs.
By Chrispho OwuorKenya’s growth rate also dipped slightly from 4.7 per cent in 2024 to 4.6 per cent in 2025, despite the report noting that “positive growths in all sectors of the economy” were achieved during the year.
By David AbonyoRuto said the country had moved away from the economic pressure that marked the period after the Covid-19 shock, describing the current situation as one of recovery and growth.
By Chrispho OwuorSeveral economies were singled out for strong performance, including Benin, Côte d’Ivoire, Ethiopia and Rwanda, which recorded growth above 6 percent.
By Chrispho OwuorIn its World Economic Outlook (April 2026), the IMF projects global growth at 3.1% for 2026. It warns Middle East war, rising debt and geopolitical tensions could weigh on recovery, especially in emerging economies.
By Chrispho OwuorMaraga further said that money collected through taxes is not being reflected in service delivery, raising concerns about how public resources are being managed.
By Chrispho Owuor