The World Bank has revised downward its growth forecast for the Kenyan economy, now projecting GDP growth of 4.3% in 2026, down from the 4.9% forecast issued last November. The institution attributes this revision to the impact of the conflict in the Middle East, which has increased global economic uncertainty.
In its latest economic update published on Thursday, the World Bank also forecasts 4.4% growth in 2027, following an expansion of 4.6% in 2024. These projections contrast with those of Kenya's Ministry of Finance, which expects stronger growth of 5.0% in 2026 and 5.2% in 2027.
According to the World Bank, rising global energy prices, combined with geopolitical tensions, are expected to increase production costs for businesses and reduce households' purchasing power in the short term.
The institution nevertheless notes that Kenya has maintained economic growth close to 5% per year over recent years. However, it warns that recurring climate shocks and the deterioration of the global economic environment continue to weigh on the country's development prospects.
