Nairobi — The government has revised Kenya's 2026 economic growth forecast downward to 5 percent from the earlier projection of 5.3 percent, citing the impact of the Middle East conflict on global energy markets and rising fuel costs.
Presenting the 2026/27 Budget in Parliament, Treasury Cabinet Secretary John Mbadi said higher energy prices triggered by the conflict involving Iran, Israel and the United States are expected to weigh on economic activity, particularly in fuel-dependent sectors such as transport, manufacturing and logistics.
The Treasury had initially projected the economy to expand by 5.3 percent in 2026, supported by strong agricultural performance, a recovery in the services sector and the implementation of reforms under the government's Bottom-Up Economic Transformation Agenda (BETA).
