We develop a semi-structural new-Keynesian open-economy model, with separate food and non-food inflation dynamics, for … forecasting and monetary policy analysis in low-income countries and apply it to Kenya. We use the model to run several policy …-relevant exercises. First, we filter international and Kenyan data (on output, inflation and its components, exchange rates and interest …

, inflation and lending rates. All data was obtained from the Central Bank of Kenya online repositories. The empirical assessment … existence of fiscal dominance in Kenya. The study employed monthly data for the period Jan 2010 - Dec 2022. Using Structural … effective in controlling and stabilizing prices especially inflation; two, expansionary fiscal policy is not only inflationary …