<\/p>\n
According to reports, Kenya is among at least 12 African countries that have approached the World Bank for emergency support as global energy markets remain volatile. As East Africa\u2019s largest economy and a major fuel importer, Kenya has been particularly exposed to the surge in oil prices following disruptions to shipping and supply routes.<\/p>\n
<\/p>\n
To ease the immediate impact on consumers, the Kenyan government has announced a temporary cut in fuel taxes, reducing the levy from 16% to 8% for the next three months. However, economists warn that the measure may offer only limited relief if global prices remain elevated.<\/p>\n
<\/p>\n
Speaking to Channel Africa on Monday, Kenyan Economist Fred Ogolla said fuel price increases have already rippled through the economy. \u201cTransport fares have gone up, logistics costs are higher, and this is feeding directly into food inflation,\u201d he said. \u201cHousehold budgets are under strain, and small traders are also being hit hard.\u201d<\/p>\n
<\/p>\n
Ogolla noted that electricity bills have risen as well, driven by higher energy costs, while inflation is expected to increase from earlier forecasts. The World Bank projects Kenya\u2019s inflation could rise to around 4.8% in 2026, partly due to external shocks.<\/p>\n
<\/p>\n
The government is seeking rapid response financing from the World Bank, which allows countries to access up to 10% of undisbursed funds from existing programmes without lengthy approval processes. Officials see this as a way to stabilise foreign exchange reserves, maintain fiscal space and support targeted social programmes.<\/p>\n
<\/p>\n
However, the move has sparked debate domestically, as Kenya already carries a heavy debt burden. Ogolla said many Kenyans are sceptical about further borrowing, arguing that previous loans have not translated into tangible benefits for ordinary citizens.<\/p>\n
<\/p>\n
He added that Kenya\u2019s vulnerability stems from its dependence on imported fuel and goods, calling for longer-term solutions such as improved domestic resource mobilisation, reduced corruption and investment in productive sectors to reduce exposure to global shocks.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":32572,"template":"","meta":{"_acf_changed":false},"news-type":[78,44],"class_list":["post-32571","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-featured","news-type-finance","entry"],"acf":{"short_description":"Kenya has requested financial assistance from the World Bank to help cushion its economy from shocks linked to the war involving the United States and Iran, as rising fuel and transport costs intensify pressure on households and businesses.","published_date":"","news_description":"Kenya has requested financial assistance from the World Bank to help cushion its economy from shocks linked to the war involving the United States and Iran, as rising fuel and transport costs intensify pressure on households and businesses.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32571\/revisions"}],"predecessor-version":[{"id":32573,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32571\/revisions\/32573"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/32572"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=32571"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=32571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}