Kenya Inflation Rate Softens to 6-Month Low of 4.4%

The annual inflation rate in Kenya eased to a six-month low of 4.4% in January 2026, from 4.5% in December and November, partly attributable to base effects. Inflation has been at the lower end of the 5% midpoint where the central bank prefers to anchor price-growth expectations since June 2024. Key transportation costs slowed to 4.8% from 5.2%, driven by a 1.9% fall in inter-town bus and matatu fares, alongside modest reductions in petrol (-1.1%) and diesel (-0.6%). Food inflation also moderated to 7.3% from 7.8%, as declines in the prices of staples such as sugar (-3%), mangoes (-3.2%), and cooking oil (-0.1%) helped mitigate rising costs in other food categories. This comes despite a worsening food crisis following the shortest October–December rainfall season since 1981. Meanwhile, inflation in housing, water, electricity, gas and other fuels accelerated to 2.2% from 1.6%. On a monthly basis, the CPI rose by 0.6%, the same pace as in December.

Kenya’s inflation rate stood at 4.5% in December 2025, unchanged from November and remaining close to its highest level since June 2024. Still, inflation remained below the 5% midpoint of the central bank’s target range for a 19th straight month. Prices of food and non-alcoholic beverages exerted the main upward pressure, edging up to 7.8% from 7.7% in November, with tomatoes (30.3%), sukuma wiki (23.4%), and mangoes (23.1%) contributing most. Other notable rises included maize flour (13.2%), loose maize grain (12.6%), sugar (12.5%) and Irish potatoes (8.3%). Additionally, prices of transportation (5.2% vs 5.1%), of which fuels; and housing & utilities (1.6% vs 1.9%) played a key role in inflation dynamics. On a monthly basis, the CPI rose by 0.6% in December, after a 0.2% increase in the prior month, mainly on the back of transportation (1.9%). Country bus and matatu fares rose 5.3%, while international flights increased 14.4% due to festive season demand.

Kenya's annual inflation rate stood at 4.6% in October 2025, the highest since June last year, unchanged from September. Still, inflation remained below the 5% midpoint of the central bank’s target range for a 17th straight month, partly due to weak domestic demand. Meanwhile, the core inflation, the central bank’s preferred gauge of underlying price pressures, slowed to 2.7%, compared with 2.9% in September. On a monthly basis, consumer prices rose by 0.2% in October, the same pace as in the previous period.