NAIROBI, Kenya, Oct 13 – The International Monetary Fund (IMF) has lowered its inflation forecast for Kenya in 2027 to 5 percent from 5.9 percent projected in April, signalling a slower rise in consumer prices next year.
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.
The IMF expects the average price of a barrel of oil to fall to $87.39 in 2027 from $95.74 in 2026.
Kenya’s economic growth forecasts remain unchanged, with the IMF projecting gross domestic product growth of 4.5 percent in 2026 and 4.7 percent in 2027.
The revised IMF outlook comes as the Central Bank of Kenya (CBK) projects inflation to rise to 7.2 percent in December 2026 before easing to 5.1 percent by August 2027.
The CBK has linked the expected near-term increase to global energy prices and cost-of-living pressures, before inflation begins to ease next year.
