Kenya’s economy exceeded expectations with faster growth in the first quarter due to a boost in the agriculture sector, which grew 5.8% from a year earlier. GDP rose 5.3% in the three months through March, marking the fastest quarterly growth in a year. However, risks to the outlook include Moody’s recent credit ratings downgrade, high inflation, rising domestic and global interest rates, and new taxes. The MPC increased the key interest rate by 100 bps 10.5% to combat sustained inflationary pressures.