Mastercard: Strong domestic demand to drive Kenya’s economy in 2026
The report also attributes the positive outlook to easing inflationary pressures, driven by a weaker US dollar and lower energy prices, which could create room for the Central Bank of Kenya to lower interest rates. Kenya breaking news | Kenya news today |..
✨ Key Highlights
Kenya's economy is projected to demonstrate resilience and growth into 2026, primarily fueled by strong domestic demand, increasing digital inclusion, and diversified trade relationships.
- The Mastercard Economics Institute (MEI) Economic Outlook 2026 highlights easing inflationary pressures from a weaker US dollar and lower energy prices, potentially allowing the Central Bank of Kenya to reduce interest rates.
- According to Khatija Haque, Chief Economist for EEMEA at MEI, the outlook is "broadly constructive" due to Kenya's adaptability and strengthening trade with emerging markets.
- The World Bank forecasts Kenya's Gross Domestic Product (GDP) to grow by 4.9 percent in 2026, up from 4.7 percent in 2024, with stable inflation around 5 percent this year.
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CAK Approves KCB Group Acquisitions Amid Projections for Kenyan Economic Growth - January 2026
The Competition Authority of Kenya (CAK) has officially approved KCB Group PLC's acquisition of Riverbank Solutions Limited, a fintech firm. This transaction was first announced in March 2025. In a separate deal, KCB Group also received approval to acquire the Mwendwa firm. These corporate acquisitions are taking place as Kenya's economy is projected to demonstrate resilience and growth into 2026, according to a report from Mastercard. The report states that this growth will be primarily fueled by strong domestic demand. The economic outlook is also supported by increasing digital inclusion and diversified trade relationships.
