Inflation rises in Kenya and Namibia amid weather and supply risks

Kenya’s annual inflation rate rose to 6.8% in September 2026, up from 6.6% in August. According to the Kenya National Bureau of Statistics, the increase was primarily driven by food, transport, and housing costs. Despite this rise, inflation remains within the Central Bank of Kenya’s target range of 2.5% to 7.5%. Consequently, the central bank maintained its interest rate at 8.75% and upwardly revised its 2026 economic growth forecast to 5.0%.

In Namibia, headline inflation reached 5.4% in September 2026. Standard Bank Namibia projects that inflation could climb to 5.2% in 2027, fueled by global oil shocks and domestic food supply threats. Risks include a Foot and Mouth Disease outbreak affecting approximately 29,000 animals and the persistence of El Niño conditions, which threaten crop yields and regional food security. Additionally, drought conditions may impact hydroelectric power generation, potentially increasing utility tariffs.