The annual inflation rate in Kenya decreased to 6.4% in June 2026, down from 6.7% in May, marking the first slowdown since February 2026. This decline was attributed to lower price increases in transportation and food, with transportation rising by 16.1% compared to 16.5% in the previous month, and food prices increasing by 8.6% versus 9.4%.

Kenya's financial markets in the first half of 2026 have shown resilience, providing investment opportunities in equities, fixed income, and currency segments despite global challenges. The Kenyan shilling has remained stable against the dollar, contrasting with the volatility experienced two years prior, with analysts attributing this stability to disciplined fiscal management, according to Sharp Daily.

According to the latest Stanbic Bank Kenya Purchasing Managers' Index (PMI), Kenya's private sector activity improved in June, rising to 50 from 46.6 in May. This increase indicates a stabilisation in business conditions, attributed to rising sales.

Tanzania's annual headline inflation rose to 4.2% in May 2026, up from 4.0% in April, primarily due to an 11.9% increase in transport prices linked to monthly fuel price hikes of 13.8% for diesel and 10.4% for petrol. Core inflation also increased to 3.4% from 3.1%, indicating broader price pressures beyond food and energy, according to the National Bureau of Statistics.

As of July 2, Kenya's foreign exchange reserves stood at USD 14.047 billion, which is sufficient to cover six months of imports. This amount exceeds the statutory minimum requirement set by the Central Bank of Kenya (CBK). The information was detailed in the CBK's latest Weekly Bulletin released on July 3, indicating that the reserves provide a strong buffer against external economic pressures.

Uganda's inflation increased to 3 percent in April, up from 2.8 percent in March, primarily due to rising energy and transport costs, according to data from the Uganda Bureau of Statistics. Monthly prices rose by 0.6 percent, marking the fastest increase since February 2025, while food and core components showed contained price pressures.