Kenya inflation rises to 6.8% in September

Kenya's annual inflation rate climbed to 6.8% in September 2026, with food, transport and household energy prices playing a major role, according to the Kenya National Bureau of Statistics (KNBS). Last month's figure marked the second straight monthly increase, following 6.6% in August and 6.5% in July. Prices were 6.8% higher in September 2026 than in the same period a year earlier, driven by surges in food and non-alcoholic beverages, transport and housing, water, electricity, gas and other fuels.

Together, these three sectors accounted for over 57% of the total weight in the 13 major expenditure categories. The overall Consumer Price Index jumped from 155.85 in August 2026 to 156.47 in September 2026, reflecting a 0.4% monthly inflation rate. Food prices saw a 9.5% annual hike, with white wheat flour up 4.5%, fresh unpacketed cow milk by 5.8% and fresh packeted cow milk by 6%.

A 500-millilitre packet of fresh milk cost Ksh57.74 in August 2026 and rose to Ksh61.23 in September. UHT long-life milk saw an 8% price increase to Ksh61.64 per packet. Vegetables like cabbages rose 6.2%, potatoes by 3.3% and cooking oil by 0.7%. Conversely, tomatoes fell by 4.1%, spinach by 2.1%, sifted maize flour by 0.6% and sugar by 0.4%.

Over the past year, potatoes surged 33.6%, kale-sukuma wiki by 32.5% and cabbages increased 25.8%. Transport inflation peaked at 15.6%, even with some fare reductions. Inter-city and city bus fares declined 1% and 0.3%, respectively, while international air travel increased 8.1% monthly. Diesel prices stayed flat at Ksh219.04 per litre, up 26.9% since September 2025, while petrol rose 15.8% to Ksh214.95 per litre.

The Isiolo-Nairobi country bus route's national average fare dropped from Ksh1,500 in August to Ksh1,200 in September. Housing, water, electricity, gas and other fuels inflation stood at 3.2%. Electricity costs eased slightly, with a 50-kWh tariff falling from Ksh1,289.47 to Ksh1,258.21 and a 200-kWh tariff dropping from Ksh5,658.80 to Ksh5,533.76.

Gas and LPG prices declined marginally, while firewood and charcoal prices rose 1.8% and 1.6%, respectively. Core inflation, excluding volatile items, rose to 4% in September from 3.4% in August, while non-core inflation stood at 14%. Core inflation, based on less volatile food products and services, contributed 4.2 percentage points to the total inflation, with non-core inflation accounting for 2.6 percentage points.