NAIROBI, Nov. 4 (Xinhua) -- Kenya's gross domestic product (GDP) growth is projected to steady at 4.6 percent in 2026, matching its 2025 pace, the World Bank's 34th Kenya Economic Update said.
The report, launched Wednesday in Nairobi, Kenya's capital, said Kenya's real GDP growth accelerated to 5.2 percent year-on-year in the first half (H1) of 2026 from 4.9 percent in H1 2025, as stronger industry and services offset slower agricultural growth.
While raising Kenya's 2026 GDP growth forecast by 0.3 percentage points from 4.3 percent in July, the World Bank cautioned that this outlook faces key downside risks, including external shocks, fiscal strain, political and climate vulnerabilities, and subdued investment growth.
"A weaker global or regional growth environment could also dampen demand for Kenya's exports, slow tourism activity, and reduce foreign investment inflows, weakening growth prospects," says the report.
The report noted that escalating geopolitical tensions, particularly in the Middle East, could drive up fuel and shipping costs, spark inflationary pressures, widen the current account deficit, and further erode household purchasing power.
The report added that Kenya's industrial growth accelerated to 4.9 percent in the first half of 2026, driven by construction and manufacturing. The services sector maintained a steady 5.2 percent expansion, supported by tourism, financial services, and education. ■
