KNBS Consumer Price Index: Kenya’s inflation is 6.8%, but non-core prices are rising at 14%

Kenya's September 2026 inflation rate of 6.8% conceals a much larger disparity in price pressures, with non-core inflation reaching 14.0%, according to the Kenya National Bureau of Statistics (KNBS). The overall inflation figure fails to reflect the extent of price hikes in more volatile consumer sectors. Core inflation was measured at 4.0% in September, while non-core inflation stood at 14.0%.

This gap amounts to 10 percentage points. In 2026, Kenya's annual consumer price inflation was 6.8%, indicating a 6.8% rise in the general price level compared to September 2025. Food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels were the primary drivers of the inflation surge. Food and non-alcoholic beverages saw a 9.5% annual inflation rate, transport experienced the highest at 15.6%, and housing, water, electricity, gas, and other fuels had 3.2% annual inflation.

On a monthly basis, the Consumer Price Index (CPI) increased by only 0.4% between August and September, rising from 155.85 to 156.47. Non-core inflation has consistently outpaced core inflation throughout 2026. While non-core inflation peaked at 16.0% in May 2026, it eased to 14.0% in September 2026. Non-core inflation is not merely a result of broad-based price increases across all products.

Individual commodities in the consumer basket moved in different directions during September. For instance, tomatoes saw a 4.1% decline, sugar dropped 0.4%, and electricity prices decreased, with the 50-kWh category falling 2.4% and the 200-kWh category declining 2.2%. Meanwhile, UHT milk increased by 8%, fresh packeted milk rose by 6%, cabbage climbed 6.2%, and white wheat flour increased 4.5%.

The breakdown of the 6.8% headline inflation rate reveals that core inflation contributed 4.2 percentage points, while non-core inflation added 2.6 percentage points. Food and non-alcoholic beverages alone accounted for 2.8 percentage points of the overall inflation. Within this food category, core components contributed 1.1 percentage points, and non-core components added 1.7 percentage points.

Transport added another 1.6 percentage points, with 1.1 percentage points from core components and 0.5 points from non-core components. Thus, Kenya's September inflation narrative comprises two layers: the headline rate of 6.8% and a more volatile component of the basket, which exhibited a significantly higher inflation rate of 14.0%.

For households, this distinction is crucial as the prices they experience at shops, markets, transport stages, and energy outlets can fluctuate markedly from the national average captured by the overall CPI. The KNBS report, based on a monthly survey of retail prices collected from a representative sample of outlets across 50 urban data-collection zones nationwide, highlights the disparity between the two inflation measures.