Kenya Inflation Rate Edges Higher in March

The annual inflation rate in Kenya ticked higher to 4.4% in March 2026 from a seven-month low of 4.3% in the prior month. Prices accelerated mostly for food & non-alcoholic beverages (7.7% vs 7.3% in February); housing & utilities (2% vs 1.8%) and health (2.7% vs 2.4%). Meanwhile, price growth moderated for alcoholic beverages & tobacco (2.3% vs 2.5%); clothing & footwear (1.8% vs 2%) and restaurants & hotels (2.4% vs 2.7%). Transportation prices also increased at a slower 3.8%, compared to 4% previously, as government fuel procurement measures helped contain sharp price rises, even amid reports of temporary shortages at certain independent fuel retailers. President William Ruto recently unveiled a set of measures designed to protect Kenyans from potential supply disruptions and economic shocks stemming from the ongoing Middle East conflict. On a monthly basis, the CPI rose by 0.5%, after a 0.2% increase in the preceding month.

The annual inflation rate in Kenya cooled down further to 4.3% in February 2026, the lowest since July last year, from 4.4% in the prior month. Price growth moderated primarily for key CPI components such as transportation (4% vs 4.8% in January) and housing, water, electricity, gas and other fuels (1.8% vs 2.2%). Meanwhile, food inflation remained stable at 7.3%, on tighter supply of staples. On a monthly basis, the CPI rose by 0.2%, slowing from a 0.6% increase in the prior month.

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.