Nairobi, Dec. 31 -- Kenya's economy is set to expand faster in 2026 as inflation remains unchanged, reflecting a recovery that global lenders indicate will test the balance between growth and cost-of-living measure.

The latest World Bank's Kenya Economic Update shows that market perceptions expect inflation to hold at 5.0 percent in 2026, unchanged from forecasts for 2025 and 2027, and higher than the 4.5 percent recorded in 2024.

At the same time, the multilateral lender projects real gross domestic product (GDP) growth of 4.9 percent in 2026, up from 4.7 percent in 2024, indicating a gradual strengthening of economic activity.

The outlook suggests that the economy is emerging from a period of weak growth, marked by tight financial co...