Kenya’s annual inflation rate climbed to 6.8 per cent in September 2026, up from 6.6 per cent in August, as rising food prices continued to put pressure on household budgets.
The latest figure, released by the Kenya National Bureau of Statistics (KNBS), represents the third consecutive monthly increase in inflation, following readings of 6.4 per cent in June and 6.5 per cent in July. It is also the highest inflation rate recorded since January 2024.
Food prices remain a major driver
Food and non-alcoholic beverages recorded annual inflation of 9.5 per cent in September, compared with 9.0 per cent in August.
Several commonly consumed food items recorded notable price increases during the month. UHT long-life milk rose by 8 per cent, while cabbage increased by 6.2 per cent and fresh milk by 6 per cent. The price of a 2kg packet of white wheat flour also increased by 4.5 per cent.
Some food items, however, became cheaper. Tomato prices declined by 4.1 per cent, while sifted maize flour and sugar recorded smaller decreases.
Transport continues to exert pressure
Transport remained another significant source of inflationary pressure, with prices in the sector rising 15.6 per cent year-on-year in September.
Interestingly, some public transport fares eased during the month. Country bus and matatu fares declined by 1 per cent, while city bus and matatu fares fell by 0.3 per cent. International airfares, however, increased by 8.1 per cent.
Housing, water, electricity, gas and other fuels recorded annual inflation of 3.2 per cent, down from 3.6 per cent in August.
Households also received some relief from electricity costs, with electricity for consumers using 50 kilowatt-hours falling by 2.4 per cent, while the cost for households consuming 200 kilowatt-hours declined by 2.2 per cent.
Inflation remains within the target range
Despite the latest increase, the 6.8 per cent inflation rate remains within the Central Bank of Kenya’s 2.5–7.5 per cent target range, although it is above the 5 per cent midpoint.
The September reading also marked the sixth consecutive month in which inflation remained above the midpoint of the Central Bank’s target range.
On a month-to-month basis, consumer prices increased by 0.9 per cent in September, compared with a 0.4 per cent increase in August.
The latest figures highlight continued pressure on the cost of living as households enter the final quarter of 2026, with food and transport remaining key contributors to the overall movement in consumer prices.
Source: Kenya National Bureau of Statistics (KNBS).
