Kenya Inflation Hits 4.5 percent in December 2025 Amid Festive Season Price Surges
January 1, 2026
Kenya’s annual inflation rate remained stable at 4.5% in December 2025, according to the latest report from the Kenya National Bureau of Statistics (KNBS). While the year-on-year figure indicates a general price increase of 4.5% compared to December 2024, the month-on-month consumer price index (CPI) saw a slight uptick of 0.6%, rising from 147.08 in November to 148.02 in December.
Key Drivers of Inflation
The inflationary pressure was primarily concentrated in three major expenditure categories, which together account for over 57% of the total CPI weight:
- Food and Non-Alcoholic Beverages: Prices in this category surged by 7.8% over the past twelve months.
- Transport: Costs rose by 5.2% year-on-year, driven largely by seasonal demand.
- Housing, Water, Electricity, Gas, and Other Fuels: This division recorded a more modest increase of 1.6%.
Festive Season and Food Price Dynamics
The December festivities significantly influenced short-term price movements. Most notably, Transport costs spiked as country bus and matatu fares for inter-town travel increased by 33.3%. International flight prices also saw a double-digit jump of 14.4%.
In the food basket, several staples experienced notable monthly increases:
- Maize Flour (Loose): +5.1%
- Kale (Sukumawiki): +4.7%
- Potatoes (Irish): +2.9%
- Beef (with bones): +1.0%
Conversely, consumers found some relief in the prices of Sugar (-1.5%) and Mangoes (-1.6%) during the same period.
Energy and Utility Costs
A positive highlight for households was the decline in electricity costs. The price for 200 kWh consumption dropped by 2.6% (from KSh 5,676.22 to KSh 5,530.12), while the 50 kWh rate decreased by 2.8%. Meanwhile, fuel prices remained stagnant, with petrol holding steady at KSh 185.59 per litre.
Core vs. Non-Core Inflation
The report distinguishes between core and non-core inflation to highlight underlying economic trends:
- Core Inflation: Measuring non-volatile items like manufactured food, health, and education, core inflation eased to 2.0% in December 2025.
- Non-Core Inflation: This remained significantly higher at 11.2%, reflecting the volatility of food and energy prices.
Economic Outlook
The overall contribution to the 4.5% inflation rate was nearly evenly split between core (2.5 points) and non-core (2.0 points) factors. The Food and Non-Alcoholic Beverages sector alone was responsible for 2.4 points of the total inflation, underscoring its continued role as the primary determinant of the cost of living for Kenyans. As the country heads into 2026, the stabilization of core inflation suggests a degree of underlying price resilience despite seasonal volatility in food and transport.
How Inflation Affects Your Money:
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Posted by: Yuthufu