Kenya Economy Steady at 4.6pc, But Debt and Energy Costs Weigh on Outlook – EBRD
NAIROBI, Kenya, June 3 – Kenya’s economy is projected to maintain steady but subdued growth in the near term, even as rising energy costs, tight fiscal Kenya breaking news | Kenya news today |..
✨ Key Highlights
Kenya's economy is expected to see steady but subdued growth of 4.6% in 2026, according to the European Bank for Reconstruction and Development (EBRD). However, rising energy costs and a high debt burden pose significant challenges to the outlook.
- Projected economic growth: 4.6% in 2026, rising to 4.9% in 2027.
- Key organization: European Bank for Reconstruction and Development (EBRD).
- Significant challenges: 70% public debt to GDP, 6.1% fiscal deficit, and re-emerging inflation at 4.4% in March 2026.
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Public Debt Rises by Sh533bn to Sh12.83 Trillion - June 2026
Kenya's public debt has surged by Sh533 billion in the first quarter of the year, reaching a total stock of Sh12.83 trillion by the end of March. The European Bank for Reconstruction and Development projects Kenya's economy will grow at a steady but subdued rate of 4.6% in 2026. However, the EBRD notes that rising energy costs and a high debt burden pose significant challenges to the economic outlook. Meanwhile, Kenyan consumers and businesses will continue to pay current electricity rates after the government withdrew a retail electricity tariff review application submitted by the Kenya Power and Lighting Company.
