Govt cuts 2026 economic growth forecast to 5pc
Presenting the 2026/27 Budget in Parliament, Treasury Cabinet Secretary John Mbadi said higher energy prices triggered by the conflict involving Iran, Israel and the United States are expected to weigh on economic activity, particularly in fuel-dependent sectors such as transport..
✨ Key Highlights
The Kenyan government has lowered its 2026 economic growth forecast to 5 percent, down from 5.3 percent, due to the impact of the Middle East conflict on global energy markets and rising fuel costs.
- Revised 2026 economic growth forecast: 5 percent.
- Key entity: Kenyan government, presenting the 2026/27 Budget.
- Contributing factors: Rising fuel costs, increased annual inflation rate to 6.7 percent in May.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
CS Mbadi's Sh4.8 trillion tightrope - June 2026
National Treasury Cabinet Secretary John Mbadi presented the Sh4.82 trillion budget for the 2026/27 fiscal year, navigating fiscal consolidation efforts amidst mounting public debt and revenue challenges. The budget is heavily focused on infrastructure projects with reduced emphasis on new taxes, serving as a key campaign strategy for President William Ruto's re-election bid. This comes as the government also cut its 2026 economic growth forecast to 5 percent, down from 5.3 percent, due to the impact of the Middle East conflict on global energy markets and rising fuel costs. Additionally, the government is set to introduce the Planning Bill 2026 to create a legal framework for national planning and ensure budgets are aligned with development objectives.
