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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Iranian parliament speaker Mohammad Bagher Ghalibaf says the U.S. must act to prevent war after Tehran sent a “strong and rational response” to Washington. Meanwhile, U.S. forces have reportedly carried out limited strikes against Iranian targets, including Qeshm Island,
Hundreds of millions of U.S. citizens head to the polls on 3 November to elect the House of Representatives and Senate. How they vote could influence the direction of Donald Trump’s remaining 26 months in office and the outcomes of the Ukraine and Iran conflicts.
A six-day humanitarian ceasefire in the Russian-held Ukrainian town of Oleshky ended on Sunday, 1 November, after facilitating aid deliveries and civilian evacuations.
Kyrgyzstan has emerged as Central Asia’s fastest-growing economy, fuelled by a construction boom, public investment and trade linked to Russia. But with Western sanctions tightening, can the country sustain its rapid growth?
Russia airstrikes on a school used as a humanitarian aid distribution point in southeastern Ukraine's Zaporizhzhia region killed at least 26 people, including rescue workers and police officers, Ukrainian officials said. Another 27 people were reported missing.
China’s ruling Communist Party is stepping up oversight of technology firms, internet platforms and digital finance in a sweeping drive to tackle corruption and tighten control over the country’s rapidly evolving digital economy.
A wave of bomb threats targeting passenger flights has disrupted air travel across Europe, forcing diversions, airport closures and fighter jet escorts. No explosives have been found, raising questions about who is behind the alerts and whether the disruption itself is the goal.
U.S. President Donald Trump says Washington will end its annual financial and military aid to Israel by the end of 2026, under an agreement he claims to have reached with Israeli Prime Minister Benjamin Netanyahu.
Volodymyr Zelenskyy has confirmed that Ukraine's negotiators will meet with Russian and U.S. delegations in Abu Dhabi next week for the first peace talks mediated by Washington since February.
Spanish police are investigating the death of Tenerife striker Jesús de Miguel, who died after a collision with an opposing goalkeeper during a second-division football match. The case raises questions about when an on-field challenge can become a criminal offence.
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