The National Treasury of Kenya has revised its economic growth forecast for 2026 downwards from 5.3% to 5%, citing global uncertainties.

• The projected economic growth for 2026 has been adjusted to 5%.
• The revision was announced by Treasury Principal Secretary Chris Kiptoo.
• The Middle East conflict is identified as a primary reason for the revised forecast due to its impact on fuel prices and supply chains.

Kenyan banks are significantly increasing lending to the agriculture sector, with loans rising by 23.5% to Sh190.2 billion in the year to April 2026. This surge is attributed to falling interest rates, which have revived private sector borrowing and signaled renewed confidence in agriculture.

• Outstanding loans to agriculture rose by 23.5% to Sh190.2 billion.
• The Central Bank of Kenya (CBK) data shows this growth coincides with a decrease in the weighted average lending rate to 14.64%.
• Equity Group is a notable lender, aiming to increase agriculture's share in its loan portfolio to 30% by 2030, focusing on value chain financing.

The National Treasury will begin nationwide public hearings in August on proposed cuts to Pay As You Earn (PAYE) tax, with the Cabinet Secretary assuring workers that tax relief is still planned.

• The Treasury's initial proposal includes exempting employees earning Sh30,000 and below from PAYE and lowering rates for those earning between Sh30,001 and Sh50,000.
• Key stakeholders involved include the National Treasury and the Kenya Bankers Association (KBA), which proposed cutting PAYE rates by five percentage points across all bands.
• The public participation exercise will last through August, with legislation planned for September if approved by Parliament.