KNBS: Kenya transport costs rise even as diesel prices fall

Kenya's transport expenses surged significantly in August, despite falling diesel prices, according to the most recent cost-of-living data from the Kenya National Bureau of Statistics (KNBS). Transport accounted for the highest annual inflation at 15.7 percent, surpassing other major expenditure categories like food and non-alcoholic beverages, and housing.

The Consumer Price Index (CPI) indicated a 6.6 percent overall inflation rate, driven primarily by food, transport, and housing costs. The discrepancy between falling diesel prices and rising transport costs has left households and businesses questioning the reasons behind this divergence. Between July and August, diesel prices decreased by 2.2 percent, from Ksh224.04 to Ksh219.04 per liter.

However, inter-city bus and matatu fares increased by 2.1 percent, and local flight fares rose by 4.1 percent. This divergence made transport the most significant contributor to the overall inflation, with transport prices carrying a 9.6468 percent weight in the national consumption basket. Despite the monthly decline in diesel prices, transport costs continue to rise, posing a challenge for Kenyan households and businesses seeking affordable travel options.