The IMF reduced its inflation forecast for 2027 to 5 percent from 5.9 percent that it projected in April, while keeping its 2026 inflation estimate unchanged at 5.9 percent. The organisation expects oil prices to decline to $87.39 per barrel in 2027 from $95.74 in 2026. Kenya's economic growth forecasts stayed the same, with the IMF projecting gross domestic product growth of 4.5 percent in 2026 and 4.7 percent in 2027.
The IMF's revised outlook comes as the Central Bank of Kenya projects a different path, forecasting inflation will rise to 7.2 percent in December 2026 before falling to 5.1 percent by August 2027. For Kenyan savers and borrowers, lower inflation generally means money will hold its value better, while businesses may see more stable costs for planning purposes.