Kenya Inflation Moderates to 3.6 percent in March 2025
April 3, 2025
Nairobi, Kenya – April 3, 2025 – The Kenya National Bureau of Statistics (KNBS), released its latest data on consumer price indices and inflation rates for March 2025, revealing a moderate annual inflation rate of 3.6 per cent. This figure indicates that the general price level in March 2025 was 3.6 per cent higher compared to the same period last year, March 2024.
The primary drivers behind this annual increase were the rising costs of items within the Food and Non-Alcoholic Beverages category, which saw a significant surge of 6.6 per cent, and the Transport category, which experienced a 1.5 per cent increase over the year. These two categories, crucial for Kenyan households, contributed substantially to the overall inflation.
Interestingly, there was a notable decline of 0.8 per cent in the prices of items within the Housing, Water, Electricity, Gas and other fuels category during the same period. These three major expenditure divisions collectively account for over 57 per cent of the total weighting across the 13 major expenditure categories used in the CPI calculation, highlighting their significant influence on the overall inflation rate.
The Consumer Price Index (CPI) serves as a vital measure of the cost of purchasing a fixed basket of goods and services, comparing current prices to a base period set in February 2019. The inflation rate is derived from meticulously collected data through a monthly survey of retail prices. This survey targets a representative basket of household goods and services, with data gathered during the second and third weeks of each month from a statistically representative sample of outlets across 50 data collection zones nationwide.
Monthly Inflation Shows Slight Uptick
The overall CPI saw a slight increase from 143.12 in February 2025 to 143.69 in March 2025, resulting in a monthly inflation rate of 0.4 per cent.
Food and Non-Alcoholic Beverages Lead Monthly Increase
The Food and Non-Alcoholic Beverages Index experienced a 0.7 per cent rise between February and March 2025. Several key food items witnessed price increases during this period. Notably, the prices of kales (sukuma wiki) rose by 6.2 per cent, Irish potatoes by 4.5 per cent, and loose maize grain by 3.3 per cent. Conversely, consumers saw a slight decrease in the prices of sugar (0.7 per cent) and beans (0.2 per cent) during the same timeframe.
Mixed Movements in Housing and Utilities
The Housing, Water, Electricity, Gas and Other Fuels’ Index recorded a modest increase of 0.2 per cent between February and March 2025. This rise was primarily driven by a 0.2 per cent increase in the price of gas/LPG. Additionally, the cost of 50kWh electricity and 200 kWh electricity saw upward adjustments of 1.0 per cent and 0.9 per cent, respectively.
Transport Costs Influenced by Air Travel
The Transport Index registered a significant increase of 1.5 per cent between February and March 2025. This was largely attributed to a notable 3.9 per cent rise in the prices of local flights. Interestingly, the prices of petrol and diesel remained stable during this period.
Restaurant and Accommodation Services See Price Hikes
The Restaurant and Accommodation Services’ index increased by 0.4 per cent between February and March 2025, primarily due to higher prices for food prepared in hotels and restaurants.
Core Inflation Remains Lower Than Overall Inflation
The KNBS also provided insights into core inflation, which excludes volatile or transient price movements to better reflect underlying inflation trends. The rate of core inflation stood at 2.2 per cent in March 2025, increasing slightly from 1.9 per cent in February 2025. Non-core inflation, which includes the more volatile items, was significantly higher at 7.4 per cent during the same period.
Contribution to Overall Inflation
Core inflation contributed 2.3 percentage points to the overall inflation of 3.6 per cent in March 2025, while non-core inflation contributed 1.3 percentage points. Notably, Food and non-alcoholic beverages accounted for 1.9 percentage points of the non-core inflation rate, underscoring their significant impact on the overall cost of living.
These latest inflation figures from the Kenya National Bureau of Statistics provide valuable insights into the current economic landscape and the factors influencing the cost of living for Kenyans. The continued rise in food and transport costs remains a key concern, while the decrease in housing and utilities offers some relief to households.
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Posted by: Yuthufu