The latest data from the Kenya National Bureau of Statistics (KNBS) reveals a nuanced picture of the country's economic health as of early 2026. Annual consumer price inflation stood at 4.3% in February 2026, indicating that the general price level for a fixed basket of goods and services increased by this margin compared to February 2025. While this represents a steady year-on-year shift, the month-on-month data showed a slight uptick, with the overall Consumer Price Index (CPI) rising by 0.2% from 148.96 in January 2026 to 149.20 in February 2026.

Primary Drivers of Inflation

The inflationary pressure in February 2026 was largely concentrated in three major expenditure categories, which collectively account for over 57% of the total weight in the CPI basket.

• Food and Non-Alcoholic Beverages: This division saw the most significant annual increase at 7.3%. On a monthly basis, prices within this category rose by 0.6%. Specific items like cabbage and Irish potatoes both surged by 4.0% between January and February 2026. Conversely, some staples offered relief, with sugar prices dropping by 4.4% and mangoes declining by 3.2% during the same period.
• Transport: The transport sector recorded a 4.0% increase over the 12-month period ending in February 2026. However, February saw a monthly decline of 0.7% in this division, primarily driven by a 2.3% drop in the prices of both petrol and diesel.
• Housing, Water, Electricity, Gas and Other Fuels: This category rose by 1.8% year-on-year. Monthly figures showed a decrease of 0.4%, bolstered by significant drops in electricity costs (down 2.9% for 50 kWh and 2.7% for 200 kWh) and a 0.6% decline in kerosene prices.

Core vs. Non-Core Inflation Dynamics

A critical metric for policy analysis is core inflation, which filters out volatile items like manufactured food, health, and education services. In February 2026, core inflation decreased slightly to 2.1%. In stark contrast, non-core inflation—which includes more volatile commodities—remained high at 10.1%. In terms of contribution to the overall 4.3% inflation rate, core inflation accounted for 2.51 points, while non-core factors contributed 1.73 points.

Sectoral Highlights

Beyond the major drivers, other sectors showed varied performance:

• Education Services: Saw a 3.0% annual increase, though monthly changes remained minimal at 0.4%.
• Restaurants and Accommodation: Recorded a 2.7% yearly rise, with hotel and restaurant snacks increasing by 0.8% in February alone.
• Information and Communication: This sector remained remarkably stable, with a year-on-year increase of only 0.4% and zero monthly change in February 2026.

Summary

The Kenyan economy in February 2026 reflects a balancing act. While significant year-on-year rises in food costs continue to impact household budgets, the easing of fuel and electricity prices provided a necessary counterweight during the month. As core inflation remains relatively low at 2.1%, the broader economic outlook suggests that underlying price stability is being maintained despite the volatility of food and energy markets.

How Inflation Affects Your Money:

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Notes:

This article was prepared using the Kenya-Consumer-Price-Indices-and-Inflation-Rates-February-2026. report released by the Kenya National Bureau of Statistics (KNBS) on February 27, 2026, as the primary reference.