Treasury warns of recession risks in fight against inflation

A businesswoman sells chapati's outside Nyayo Stadium during the Jamhuri Day Celebrations on December 12, 2022. [Elvis Ogina, Standard]

The National Treasury has warned Central Bank of Kenya's (CBK) fight to rein in inflation could tip the battered economy into a temporary recession.

The warning comes at a time the Kamau Thugge-led CBK has made attempts to squeeze high inflation out of the economy through the toughest round of rate increases in recent years.