Fuel Price Shock, Rising Bond Yields Threaten Kenya’s Economic Outlook as SIB Flags Inflation Risks

Standard Investment Bank warns that global energy disruptions, higher borrowing costs and mounting inflationary pressures could complicate Kenya’s economic recovery, even as domestic liquidity remains stable and investor demand for government securities stays strong.Kenya’s economic outlook faces mounting pressure from rising international fuel costs, higher global borrowing rates and persistent geopolitical tensions, with Standard Investment Bank (SIB) warning that the combination could increase inflation, widen the current account deficit and push domestic interest rates higher.