Kenya’s annual consumer inflation rose to 6.6 percent in August 2026, up from 6.5 percent in July, sustained by elevated transport costs and persistent food price pressures. According to data released by the Kenya National Bureau of Statistics (KNBS), the Consumer Price Index (CPI) advanced 0.4 percent month-on-month to reach 155.85.
The year-on-year headline trajectory remains anchored by three heavily weighted expenditure categories: Transport, Food and Non-Alcoholic Beverages, and Housing, Water, Electricity, Gas and Other Fuels, which collectively account for over 57 percent of the national consumer basket.
| Indicator | August 2026 | July 2026 | August 2025 |
|---|---|---|---|
| Headline Inflation (YoY) | 6.6% | 6.5% | 4.5% |
| Consumer Price Index (CPI) | 155.85 | 155.20 | 146.21 |
| Transport Division (YoY) | 15.7% | 15.6% | 4.4% |
| Food & Non-Alcoholic Beverages (YoY) | 9.0% | 9.0% | 8.3% |
| Core Inflation (YoY) | 3.4% | 3.2% | 3.0% |
| Non-Core Inflation (YoY) | 14.7% | 15.0% | 9.2% |
The August data reveals a bifurcated price landscape across primary household expenditures[1]. Transport costs posted the sharpest annual surge at 15.7 percent, despite a monthly 2.2 percent drop in retail diesel prices to KSh 219.04 per liter[1]. Petrol prices remained flat at KSh 214.95 per liter[1]. However, increases in country bus and matatu fares (+2.1%) and local flight routes (+4.1%) pushed overall monthly transport division costs up by 0.7 percent[1].
Food prices climbed 9.0 percent year-on-year, though key staples delivered month-on-month relief[1]. A 2-kilogram packet of sifted maize flour declined 2.7 percent to KSh 152.89, while sugar and cooking oil registered modest decreases of 0.6 percent and 0.4 percent, respectively[1]. These gains were offset by sharp increases in fresh produce, led by Sukuma Wiki (kale) up 4.3 percent and Irish potatoes up 4.1 percent month-on-month[1].
Underlying price dynamics show non-core inflation—comprising volatile items such as energy and unprocessed food—running at 14.7 percent year-on-year, contributing 2.7 percentage points to the overall August headline rate[cite: 1]. Meanwhile, core inflation, which tracks manufactured goods and services like healthcare, education, and ICT, edged up to 3.4 percent[1]. Core items contributed 3.9 percentage points to total inflation, signaling steady underlying demand across broader services and non-perishable markets.
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