Kenyan private sector firms are revising their inflation expectations upwards, driven by persistent concerns over fuel prices and supply-side pressures, though they still anticipate overall price growth to remain within the Central Bank of Kenya (CBK)'s target range.

• Approximately 90 percent of respondents cited higher fuel and energy prices as the primary drivers of inflation.
• The survey involved 400 private sector firms, including commercial banks, microfinance banks, and non-bank firms.
• Businesses anticipate inflation to be slightly above 5 percent in July due to the delayed impact of elevated global energy prices and geopolitical tensions affecting freight costs.