The World Bank is warning of significant economic hardship in Kenya, projecting that up to 2.4 million more people could fall into poverty by the end of 2026.

• Up to 2.4 million additional Kenyans risk falling into poverty.
• The World Bank issued the warning.
• The Middle East conflict is intensifying inflationary pressures, raising food and fuel costs and disrupting transport.

The World Bank has urged Kenya to implement significant anti-corruption reforms as a condition for its latest $750 billion lending package, which was delayed due to the government's slow progress on these measures.

• The reforms are critical, as corruption is seen diverting funds from essential services like schools, roads, and health clinics.
• Key demands include stricter rules on politicians' conflicts of interest, a new electronic procurement system, a single monitored Treasury account, and the passing of a Whistleblower Protection Bill.
• Qimiao Fan, the World Bank's director for Kenya, emphasized that honest fiscal management is crucial to meet public demand for quality services, especially given the 4.6 percent economic growth but persistent debt and unemployment challenges.

The Kenya Revenue Authority (KRA) announced it collected a record Ksh2.844 trillion in the 2025/2026 fiscal year, with the manufacturing sector being the largest contributor. This marks significant revenue growth for the tax authority.

• The manufacturing sector generated Ksh462 billion, representing 16.2% of total collections.
• Key sectors contributing to the revenue surge included manufacturing, energy, financial & insurance, ICT, and wholesale & retail trade, accounting for 62% of the total.
• The KRA attributes this strong performance to increased adoption of technology, including the Electronic Tax Invoice Management System (eTIMS), improved tax administration, and strengthened debt collection efforts.