African Development Bank forecasts 2026 growth for Kenya and Benin

The African Development Bank’s Country Focus Report projects Kenya’s economy to grow 4.6% in 2026 and 4.7% in 2027, after an estimated 5% expansion in 2025. Inflation is expected to reach 5.4% in 2026, staying within the Central Bank of Kenya’s target range. The bank warns that global uncertainty, high fuel prices, volatile commodity markets, exchange‑rate pressures and political uncertainty ahead of Kenya’s 2027 general election could slow growth and widen fiscal and external deficits.

For Benin, the AfDB forecasts 7% GDP growth in 2026 and 7.1% in 2027, with the budget deficit narrowed to about 2.4‑2.6% of GDP. Recent growth has been driven by public‑works projects, textile and agro‑food sectors, and major infrastructure investments such as the Glo‑Djigbé industrial zone and the Cotonou port upgrade. The report stresses the need to better target financing toward productive projects and cites a new credit‑guarantee mechanism aimed at mobilising €500 million for Sustainable Development Goal‑aligned investments.