Finance ministers across East Africa unveiled their 2026/27 budgets on Thursday, as investors assessed how governments plan to protect their economies from shocks linked to the ongoing Iran war while managing rising debt levels.
Kenya’s finance minister warned that global geopolitical tensions could limit efforts to reduce the fiscal deficit, while Uganda’s minister projected a return to double-digit growth, buoyed by the expected start of oil production.
The region is highly exposed to trade disruptions caused by the conflict, given its reliance on imported fuel and fertilisers. This prompted the African Development Bank to lower the regional growth forecast for 2026 from 5.3% to 5%.
Kenya set a budget deficit target of 5.5% for the current fiscal year, aiming to reduce it gradually to 3% by 2028/29. Finance Minister John Mbadi noted that both domestic and external risks could undermine these targets: climate shocks affecting agriculture and infrastructure, commodity price volatility, weaker global growth, and tighter financial conditions.
Recent protests over high fuel prices and repeated underperformance against budget targets have heightened investor scrutiny. Andrew Matheny, senior economist at Goldman Sachs, said investors will seek evidence of credible fiscal measures, such as spending cuts or realistic revenue plans.
Uganda raised its budget by 3.5%, with Finance Minister Henry Musasizi forecasting 10.2% growth in the new fiscal year, driven by the start of commercial oil production. He said the expansion would create jobs, raise household incomes, and generate resources to invest in education, healthcare, infrastructure, security and other public services.
Tanzania plans to prioritise domestic revenue collection, following a decline in aid from wealthier nations and rising debt pressures. Finance Minister Mussa Omar said this required accelerating efforts toward economic self-reliance.
The government expects growth to rise to 6.3% this year, up from 5.9% last year, with potential opportunities arising from the Iran war. Planning Minister Kitila Mkumbo highlighted prospects for transhipment services and investment in gas production, as investors seek alternatives to the Gulf region.
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Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 24th July, covering the latest developments you need to know.
U.S. strikes on Iran entered a 12th consecutive night, while Yemen's Houthis said they attacked two Saudi oil tankers in the Red Sea, urging President Donald Trump to warn Tehran it would be held responsible for any future Houthi attacks.
The U.S. military said it completed a fresh wave of strikes on Iran late on Thursday, marking the 13th consecutive night of American attacks. The latest operation lasted more than two hours, according to U.S. Central Command.
Aleksandar Vučić's visit to Kyiv on 15 July appeared to send a geopolitical signal. But the significance of the trip lies less in the journey itself than in the limits Serbia carefully observed.
Spain has declared a national emergency and evacuated more than 10,000 people after uncontrolled wildfires reached the outskirts of Madrid. Emergency crews have rescued residents as multiple blazes continue to spread across the region.
A Russian ballistic missile strike in Ukraine’s Kyiv region has killed 10 people and injured nearly 100 others at an event involving representatives of the country’s defence industry.
U.S. President Donald Trump says Israeli Prime Minister Benjamin Netanyahu will visit Washington next week as tensions continue to rise across the Middle East.
The International Criminal Court has voted to remove its chief prosecutor, Karim Khan, bringing a dramatic end to a controversy that has shaken the world's highest war crimes tribunal in recent times.
President Donald Trump on Friday celebrated what he called a "historic milestone" for civilian nuclear energy, announcing that four American companies had successfully achieved criticality for advanced reactor designs by the 4 July deadline he set last year.
Six candidates vying to become the next United Nations Secretary-General have called for restoring the organisation's credibility, strengthening multilateralism and reforming the UN, during the first public town hall debate ahead of a decisive Security Council vote next week.
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