Kenya’s headline inflation rose to 4.5% year-on-year in August 2025, up from 4.1% in July, marking the highest level since June 2024.
The Kenya National Bureau of Statistics (KNBS) attributed the increase to surging prices in the food and transport sectors.
“The annual consumer price inflation as measured by the Consumer Price Index (CPI) was 4.5% in August 2025. This implies that the general price level was 4.5% higher than in August 2024,” KNBS stated.
Monthly Inflation and Central Bank Outlook
Month-on-month inflation stood at 0.3% in August, compared to 0.1% in July. Despite the uptick, inflation remains within the Central Bank of Kenya’s target range of 2.5%–7.5% for the 26th consecutive month.
Earlier in August, the Central Bank cut its benchmark lending rate by 25 basis points to 9.50%, citing room for further monetary easing.
“Inflation remains well within target, allowing for a measured reduction in the Central Bank Rate,” the Monetary Policy Committee noted.
Food Prices Drive Inflation Surge
The CPI data revealed sharp increases in key food items:
| Item | Year-on-Year Change | Month-on-Month Change |
|---|---|---|
| Tomatoes | +38.3% | +1.2% |
| Carrots | +24.3% | +2.4% |
| Fortified maize flour | +18.7% | -1.7% |
| Mangoes | +18.1% | +1.8% |
| Sukuma wiki | +17.0% | +1.9% |
| Cabbages | +14.9% | +6.3% |
| Loose maize flour | +13.4% | -1.5% |
The food and non-alcoholic beverages category rose 8.3% year-on-year, contributing the largest share to overall inflation.
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Transport Costs Climb
Transport inflation rose 4.4% year-on-year, driven by higher passenger fares. The bus fare between Nairobi and Mombasa jumped from KSh 1,300 to KSh 1,500 in August—a 15.4% increase.
Local transport costs also edged up, with tuk-tuk fares rising by 1.5%. However, fuel prices offered some relief: Super Petrol declined by 0.5% to KSh 185.30 per litre, following a KSh 1 cut announced by the Energy and Petroleum Regulatory Authority (EPRA).
Housing and Utilities Mixed
The housing, water, electricity, gas, and other fuels index rose 0.8% year-on-year but fell 0.2% month-on-month. Electricity prices dropped by 2.3% for 50kWh and 2.1% for 200kWh usage bands, while kerosene fell 0.6%. These declines were partially offset by slight increases in rent (+0.1%) and LPG (+0.4%).
Maize Prices Hit 20-Month High
Loose maize prices averaged KSh 71.24 per kilogram in July, the highest since November 2023. The surge is attributed to reduced supply despite government efforts to allow duty-free imports of yellow maize to ease competition from animal feed producers.
