Kenya Inflation Rate Hits Near 2-1/2-Year High

The annual inflation rate in Kenya quickened further to 6.7% in May 2026, the highest since January 2024, from 5.6% in the prior month. The biggest upward pressure came from prices of transportation (16.5% vs 10% in April), as the government hiked fuel prices in April and May, in the wake of rising global energy costs amid the US-Israel conflict with Iran. Prices also advanced faster for food and non-alcoholic beverages (9.4% vs 8.8%) and housing, water, electricity, gas and other fuels (3.4% vs 2.4%).

The annual inflation rate in Kenya picked up to 5.6% in April 2026, the highest since March 2024, from 4.4% in the prior month. The spike in inflation reflects rising costs for petroleum products amid the Middle East conflict, which has pushed up transportation prices (10% vs 3.8% in March). Additional upward pressure came mostly from food & non-alcoholic beverages (8.8% vs 7.7%); housing & utilities (2.4% vs 2%); education (3.2% vs 3.3%) and miscellaneous goods & services (2.7% vs 2.5%). On a monthly basis, consumer prices rose by 1.4%, the most since April 2022, after a 0.5% increase in March, with transportation prices surging 6.5%. Inflation is expected to quicken further in the coming months, despite government measures to cushion consumers, including a reduction in fuel taxes. The VAT on petroleum products was cut from 16% to 8%, and the fuel stabilisation fund was deployed, with KES 6.2 billion (about $40 million) spent earlier this month to limit pump price increases.

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.