Kenya economy shakes 2 months into Iran war
Kenya's economy has been negatively impacted by the Iran war, with disruptions to shipping routes, increased fuel prices, and a decline in foreign currency reserves. The World Bank has downgraded Kenya's growth forecast to 4.4 percent from 4.9 percent for 2026.
Kenya's economy has been shaken two months into the Iran war. Disruptions to shipping routes linked to Iran have left millions of kilogrammes of tea stuck in Mombasa warehouses, threatening export earnings and farmer incomes. The World Bank has downgraded Kenya's growth forecast to 4.4 percent from 4.9 percent for 2026. Kenya raised petrol and diesel prices by Sh19.32 and Sh30.09, respectively, due to higher global crude prices. The Treasury has sought $300 million in emergency funding from the World Bank to cushion the economy. Food production will be damaged by fertiliser shortages, leading to further inflation.
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