On June 30, 2025, the Kenya National Bureau of Statistics (KNBS) released the Kenya Consumer Price Index and Inflation Report, stating that the annual consumer price inflation in June 2025 was 3.8%. This indicates a 3.8% increase in the general price level compared to June 2024. The main drivers of this inflation over the year were price increases in Food and Non-Alcoholic Beverages (6.6%), Transport (3.2%), and Housing, Water, Electricity, Gas and Other Fuels (0.2%). These three categories constitute over 57% of the total weight across the 13 major expenditure categories.

The Consumer Price Index (CPI) is defined as a measure of the weighted aggregate change over time in retail prices paid by consumers for a given basket of goods and services. The CPI measures the cost of purchasing this fixed basket of goods and services, comparing current prices to those of a base period, which for the current CPI, is February 2019. The inflation rate is defined as a percentage change of the CPI between two periods, with types including annual (year-on-year), quarterly (quarter-to-quarter) and monthly (month-on-month) inflation rates. Data used to derive the inflation rates is collected through a monthly survey of retail prices from a statistically representative sample of outlets in urban areas across 50 data collection zones nationwide, conducted during the second and third weeks of the month.

The overall CPI increased from 144.88 in May 2025 to 145.58 in June 2025, resulting in a monthly inflation of 0.5%.

Key Drivers of Inflation Change in June 2025

• Food and Non-Alcoholic Beverages: This category rose significantly by 1.0% monthly, primarily due to increased prices of carrots (11.1%), cabbages (10.8%), sugar (5.5%), maize grain loose (2.8%), spinach (2.3%), maize flour sifted (2.1%), tomatoes (1.2%) and beef with bones (0.7%). Conversely, prices of cooking salad (0.4%), fresh unpacketed cow milk (0.4%) and potatoes (Irish) (0.2%) dropped in June 2025. Over the twelve months to June 2025, the Food and Non-Alcoholic Beverages division rose by 6.6%.
• Transport: Prices showed mixed movements monthly. Petrol recorded the highest increase at 1.6%, followed by a 1.2% rise in the cost of personal vehicles and a 1.0% increase in country bus fares. City bus and regular matatu fares both had slight upticks of 0.2%. In contrast, the price of diesel dropped by 1.1%. Annually, the Transport division rose by 3.2%.
• Housing, Water, Electricity, Gas and Other Fuels: Electricity costs dropped significantly, by 1.6% for a 50 kWh unit and 1.5% for the 200 kWh unit. Kerosene and LPG prices also declined by 1.2% and 0.2%, respectively. On the other hand, prices of solid fuels rose, with firewood increasing by 2.0% and charcoal by 1.0%. Monthly house rent for a single room rose marginally by 0.2%. Over the twelve months to June 2025, this division rose by 0.2%.

Other notable changes in June 2025 include:

• Alcoholic Beverages, Tobacco and Narcotics: Monthly increase of 0.2%, with spirits rising by 0.5% and wines by 0.4%. The yearly increase was 5.2%.
• Clothing and Footwear: Monthly increase of 0.1%, with Infant's clothing recording the highest rise at 0.5%. The annual increase was 3.5%.
• Health: Monthly increase of 0.3%, with Dewormers registering the highest monthly price increase at 2.1%. The annual increase was 3.7%.
• Furnishings, Household Equipment and Routine Household Maintenance: Monthly inflation of 0.1%, with Buckets and basins registering the highest month-on-month price rise at 0.9%. The annual increase was 2.8%.
• Recreation, Sport and Culture: Monthly inflation of 0.2%. Prices of school textbooks for pre-primary and primary levels increased by 0.9%. The annual increase was 3.1%.
• Restaurants and Accommodation Services: Monthly inflation of 0.1%. Post-secondary school boarding fees rose significantly by 1.6%. The annual increase was 3.3%.
• Information and Communication & Insurance and Financial Services: Remained unchanged between May 2025 and June 2025. Their yearly inflations were 0.8% and 0.9% respectively.
• Education Services: Showed a negligible change between May 2025 and June 2025. The sector recorded a slight increase of 0.1% in certificate course fees. The annual increase was 2.9%.
• Personal Care, Social Protection and Miscellaneous Goods and Services: Monthly inflation stood at 0.1%. The annual increase was 3.3%.

National Average Retail Prices of Selected Commodities

Some of the key drivers of food inflation were an increase of prices of cabbages and carrots by 10.8% and 11.1%, respectively. The price of a litre of petrol increased by 1.6% to KSh. 178.19 in June 2025. On the contrary, the price of Diesel decreased by 1.1% to KSh 163.89 in the review period.

Core and Non-Core Inflation

Core inflation is a measure of inflation that is compiled from non-volatile commodities such as manufactured food items, health services, education services and ICT. Core inflation was 3.0% in June 2025. The core index increased from 128.97 in May 2025 to 129.47 in June 2025. Non-core inflation was 6.2% during the same period.

Core inflation contributed 2.7 points while non-core contributed 1.1 points to the overall inflation in June 2025. Food and non-alcoholic beverages contributed 2.0 points to the overall inflation.

How Inflation Affects Your Money:

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Notes

Kenya National Bureau of Statistics. (June 2025). Kenya Consumer Price Indices and Inflation Rates, June 2025. Retrieved from https://www.knbs.or.ke/wp-content/uploads/2025/06/Kenya-Consumer-Price-Indices-and-Inflation-Rates-June-2025.pdf