Inflation red flag as Fitch cuts Kenya growth forecast

The rating agency Fitch has cut its 2026 GDP growth forecast for Kenya from 5.2% to 5% due to projected rising inflation driven by the aftershocks of the US-Israel conflict with Iran. Fitch expects an average annual inflation rate of 5.5%, up from 4.6% pre-conflict, due to rising prices of goods and services. In March, inflation rose to 4.4%, primarily due to increases in food prices, indicating renewed pressure on household budgets.