Kenya growth forecast lowered to 4.3%

Kenya's economic growth is expected to slow this year, with the World Bank cutting its forecast to 4.3 percent, citing the global fallout from the US-Israeli war with Iran.

The bank warns that higher energy prices and disruption to shipping through the Strait of Hormuz are driving up production costs, weakening investment and squeezing household budgets.

While strong agricultural harvests, lower interest rates and a stable currency are expected to cushion the economy, the World Bank says rising fuel prices could push up to 2.4 million more Kenyans into poverty.

Looking ahead, the bank also warns that political uncertainty ahead of Kenya's 2027 general election could delay investment, slow economic reforms and weaken business confidence.

Despite the challenges, the World Bank recently approved 1.25 billion dollars in financing to support Kenya's budget and economic reform programme.