IMF cuts Kenya’s 2027 inflation forecast to 5pc
The Fund has retained its 2026 inflation forecast at 5.9 percent, with the latest projections pointing to a steeper decline in inflation between this year and next.
Nairobi, Kenya – The International Monetary Fund (IMF) has reduced its inflation forecast for Kenya in 2027 to a rate of 5 percent, down from an earlier projection of 5.9 percent made in April. This indicates a slower increase in consumer prices anticipated for the following year. The IMF has kept its inflation forecast for 2026 at 5.9 percent, reflecting expectations of a more significant drop in inflation between 2026 and 2027.
According to the IMF, the global oil price is projected to decrease to $87.39 per barrel in 2027 from $95.74 per barrel in 2026. Kenya's economic growth forecasts remain steady, with the IMF predicting a GDP growth rate of 4.5 percent in 2026 and 4.7 percent in 2027. The IMF's revised forecast comes as the Central Bank of Kenya (CBK) anticipates inflation to rise to 7.2 percent in December 2026 before moderating to 5.1 percent by August 2027.
The CBK attributes this near-term increase in inflation to global energy prices and cost-of-living pressures, with the expectation of a slowdown in inflation next year.
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