Kenya Inflation Rate Quickens to Over 2-1/2-Year High

The annual inflation rate in Kenya rose for the third month to 6.8% in September 2026, reaching its highest level since January 2024. This was the sixth consecutive month that inflation was above the 5% midpoint of the central bank’s target range. Upward pressure came primarily from prices of food and non-alcoholic beverages (9.5% vs 9% in August), transport (15.6% vs 15.7%), and housing and utilities (3.2% vs 3.6%). On a monthly basis, consumer prices inched up by 0.9%, marking the largest increase since May, after a 0.4% rise in August.

The annual inflation rate in Kenya rose to 6.6% in August 2026 from 6.5% in July, staying above the midpoint of the central bank's 2.5%-7.5% target range for a fifth consecutive month. Transportation (15.7% vs 15.6%) was the main source of inflationary pressure, as renewed geopolitical tensions in the Middle East drove oil prices higher. Moreover, food inflation remained elevated (at 9%) while prices picked up for housign & utilities (3.6% vs 3.2%). Meanwhile, the core inflation rate, which excludes selected volatile items, quickened to 3.4% from 3.2% in July, highlighting second round effects from higherl fuel costs. On a monthly basis, the CPI rose by 0.4% in August, after a 0.2% increase in the prior month.

The annual inflation rate in Kenya edged up to 6.5% in July 2026 from 6.4% in the previous month, remaining above the midpoint of the central bank's 2.5%-7.5% target range for a fourth consecutive period. The main upward pressure came from transport prices, which rose 15.6% year-on-year, reflecting the pass-through effects of earlier fuel price increases despite unchanged pump prices during the mid-month review. Food and non-alcoholic beverage inflation also remained elevated at 9.0%. Meanwhile, core inflation, which excludes selected volatile items, accelerated slightly to 3.2% from 3.1% in June, pointing to growing underlying price pressures.