The Mastercard Economics Institute has released its Economic Outlook 2026, outlining the trends expected to shape Kenya's economy this year. The report highlights how global policy changes from 2025 will continue to influence economies worldwide and predicts that growth across Sub-Saharan Africa will be supported by easing inflation, resilient consumer demand, and infrastructure investment.
Kenya's economy is expected to remain resilient in 2026, driven by solid domestic demand, expanding digital adoption, and more diversified trade relationships. Inflationary pressures are forecast to be moderate, aided by a weaker U.S. dollar and lower energy prices, allowing the central bank room to reduce interest rates and stimulate economic activity.
"The economic outlook for Kenya in 2026 is broadly constructive as the country continues to demonstrate impressive adaptability in a rapidly shifting global environment. Strengthening trade ties with emerging markets is expected to support economic momentum. However, risks remain from global trade tensions and commodity price volatility, while high debt levels may limit fiscal space in some economies."
