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June 18, 2026Technical Assistance Reports

Kenya

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Overview

Technical assistance enhances Kenya's monetary forecasting and policy analysis, highlighting fiscal and climate impacts.

Key Points

  • This mission aimed to improve Kenya's core Quarterly Projection Model for better monetary policy analysis and forecasting.
  • Technical assistance mission conducted by IMF in Nairobi from April 10 to 17, 2025.
  • Major update of the Quarterly Projection Model completed, including recalibration to enhance forecasting accuracy.
  • Introduced fiscal modeling components and disaggregated inflation analysis using KNBS-CBK data.
  • Improved forecasting performance of the Quarterly Projection Model was achieved post-update.
  • The model now includes explicit government expenditure and revenue blocks, enhancing fiscal policy analysis.
  • Incorporated climate risk factors as supply-side shocks, allowing analysis of monetary policy trade-offs.

Cite This Study

A 2026 study studied this question.

synapsesocial.com/papers/6a338ba9630953a74978d40bhttps://doi.org/10.5089/9798229050821.019
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