Kenyans face tougher economic times over the coming months, with up to 2.4 million more people at risk of falling into poverty by the end of 2026, according to the World Bank.

🇰🇪 Breaking It Down

The World Bank warned that the recent increase in the cost of food, transport and fuel could reverse Kenya's gains in poverty reduction, particularly in urban areas.

According to the bank's latest Kenya Economic Update, the conflict in the Middle East has intensified inflationary pressures by disrupting global energy markets and increasing fuel prices.

The lender, in its report released on Thursday, July 9, further disclosed that the increase in fuel prices has, in turn, pushed up the cost of transporting goods and services.

📌 What You Need to Know

The report warns the conflict could raise Kenya's poverty rate by 2 to 4.5 percentage points, pushing an additional 1 million to 2.4 million Kenyans below the international poverty line by the end of 2026.

Similarly, the Bretton Woods Institution noted that t ransport costs have remained elevated, rising by 10 per cent year-on-year in April 2026 before easing slightly to 9.8 per cent in June.

Food inflation also remained elevated at 8.8 per cent in April and 8.6 per cent in June, increasing pressure on household budgets.

Speaking during the report's release, World Bank Lead Economist Tom Bundervoet warned that the prolonged effects of the conflict could significantly increase poverty levels in Kenya.

"This conflict could push the poverty rate in Kenya by a certain number of percentage points, which then leads to one million or two million more Kenyans below the poverty line in absolute numbers," Bundervoet said.

To cushion the country against the looming crisis, the World Bank called for faster creation of formal jobs , noting that Kenya's labour market is failing to absorb the growing number of job seekers.

📰 Source: Kenyans.co.ke