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Kenya's annual inflation rate increased to 6.6% in August 2026, according to the Central Bank of Kenya (CBK). This surge in inflation was primarily driven by rising food and fuel prices, significantly impacting household costs. The non-core inflation basket exhibited a considerably higher rate of 14.7%, while the core inflation basket was recorded at 3.4%.

The rise in food and energy prices contributed substantially to the overall inflation rate. Among essential commodities, Irish potatoes saw the highest price increase at 32.7%, followed by tomatoes at 29.3%. Beef with bone prices increased by 12.1%, and sugar prices rose by 10.8%. Cooking oil experienced a 3.8% price increase, and fresh packeted cow milk rose by 2.6%.

Sifted maize flour saw a 2.4% price rise, and non-aromatic white rice increased by 0.4%. Fuel prices also surged, with diesel prices up by 26.8% and petrol prices increasing by 15.3%. Electricity prices, though not as drastically affected, saw smaller increases, with 50 kilowatts consumption up by 2.4% and the 200-kilowatt category increasing by 2.2%.

The core Consumer Price Index (CPI) basket, which accounts for 81.1% of the overall CPI, highlights the continued pressure on households from rising prices of essential food items and energy products.