IMF trims Kenya growth to 4.5pc on inflation and Iran war risks
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The IMF has cut Kenya's growth forecast to 4.5% due to rising energy costs and risks linked to the Middle East conflict. The downgrade is expected to impact job creation and accelerate inflation.
The International Monetary Fund (IMF) has revised Kenya's growth forecast for 2026 downwards to 4.5% from 4.9%, citing rising energy costs and risks associated with the war in the Middle East. The global lender also lowered its global growth forecast to 3.1% from 3.3%, reflecting mounting geopolitical and economic challenges. Kenya's economy is expected to face reduced productivity due to increased input costs, including fuel and fertilizer, leading to higher inflation. The World Bank and Fitch have also downgraded Kenya's growth projections, citing external pressures and structural constraints linked to the conflict. The Central Bank of Kenya has cut its 2026 growth forecast to 5.3% from 5.5%, reflecting emerging risks from the Middle East conflict.
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