Kenyan firms are scaling back their 2026 economic growth projections due to mounting concerns over rising inflation, largely attributed to the Middle East conflict and its impact on oil prices and global supply chains.

• Businesses anticipate inflation to "gradually increase over the next three months."
• The Central Bank of Kenya (CBK) conducted a Market Perceptions Survey involving commercial banks, microfinance institutions, and private firms.
• This downgrade in business sentiment aligns with recent revisions by global lenders like the IMF and World Bank.