CBK raises economic growth forecast to 5% as inflation risks remain
The Central Bank of Kenya (CBK) has revised upwards its economic growth projection for this year to 5% from its earlier projection of 4.9% as volatility in the global oil prices remain. CBK Governor Dr Kamau Thugge said the 2026 growth forecast will be supported by expansion in the agriculture, services and industry sectors. “The […] The post CBK raises economic growth forecast to 5% as inflation…
The Central Bank of Kenya (CBK) has increased its forecast for Kenya's economic growth to 5% for this year, up from the previously anticipated 4.9%. Governor Dr Kamau Thugge attributed this revision to the favorable outlook in the industry, services, and agriculture sectors. Agriculture is expected to grow by 3%, industry by 5.2%, and services by 5.6% in 2026.
The bank maintains that growth will reach 5.3% next year. The recent rise in global oil prices and their influence on food inflation, despite government interventions, continue to pose challenges. Inflation, which jumped from 6.6% in August to 6.8% in September, is primarily due to a surge in milk prices, which saw inflation exceed 8% in September.
The CBK anticipates the inflation rate to peak at 7.2% by December before settling in a range of 5% by May next year.
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