World Bank cuts Kenya 2026 growth forecast to 4.3pc
The lender now projects Kenya's Gross Domestic Product to grow by 4.3 percent in 2026, down by 0.6 percentage points from its pre-conflict forecast issued in late 2025...
✨ Key Highlights
The World Bank has revised Kenya's economic growth forecast downward for 2026, citing external shocks including the escalating conflict in the Middle East.
- The lender now projects Kenya's Gross Domestic Product (GDP) to grow by 4.3 percent in 2026, a 0.6 percentage point reduction from its previous forecast.
- This downgrade is attributed to rising energy costs, trade disruptions, and weakened private investment due to geopolitical tensions.
- Despite the revised outlook, the World Bank noted that Kenya's macroeconomic fundamentals remain relatively resilient compared to regional peers.
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Kenya Economy Expands 5.3 Percent in Q1 2026 Driven by Manufacturing, Mining - July 2026
Kenya's economy demonstrated robust growth, expanding by 5.3 percent in the first quarter of 2026, a notable increase from 4.9 percent in the same period last year. This expansion was primarily propelled by robust performance in key sectors including manufacturing and mining. The Kenya Revenue Authority (KRA) announced a significant increase in tax collections for the 2025/26 financial year, reporting a total of Sh2.84 trillion, marking a 10.6 percent rise in revenue compared to the previous fiscal year. However, the World Bank has revised Kenya's economic growth forecast downward for 2026, citing external shocks including the escalating conflict in the Middle East.
