BY: PENNINAH MUCHIRI

Kenyans may face increased living expenses as rising inflation and global economic uncertainty threaten to push up the cost of essential goods and services, according to the International Monetary Fund (IMF).

In its latest World Economic Outlook report released on October 13, 2026, the IMF projected Kenya’s inflation rate at about 6 per cent in 2026, up from 4.1 per cent in 2025. The report also projected the country’s economic growth at 4.5 per cent this year, slightly below the 4.6 per cent recorded in 2025.

The rising cost of living could put additional pressure on families as they struggle to meet daily expenses, including food, transport, rent and electricity bills.

One of the major concerns highlighted in the report is the impact of rising global energy and food prices. Since Kenya depends on imported fuel, changes in international oil prices can increase the cost of transporting goods and providing services locally.

Higher transport costs may also affect traders and businesses, potentially leading to increased prices for consumers.

Low-income households could be among those most affected because a large share of their income goes towards basic needs. When prices rise faster than earnings, families may be forced to reduce spending on other important needs.

The IMF also warned that continued geopolitical tensions, disruptions to global trade and uncertainty in international markets could worsen the economic situation. These challenges may affect countries that rely heavily on imported energy and have limited resources to protect consumers from rising costs.

Despite the concerns, the IMF expects Kenya’s economy to continue growing, although at a slightly slower pace. However, economic growth does not necessarily mean that every household will experience an improvement in its financial situation.

The report highlights the need for policymakers to maintain economic stability while considering support for households most affected by rising food and energy costs.

For many Kenyans, the key concern remains whether their earnings will be enough to cover daily expenses as the cost of living continues to rise.