Kenya’s Inflation Rises to 6.6% as Food and Transport Costs Keep Pressuring Households
The cost of living in Kenya continued to rise in August, with annual inflation reaching 6.6% as higher food and transport prices put more pressure on household budgets.
The Kenya National Bureau of Statistics (KNBS) said on Monday that the inflation rate increased from 6.5% in July. It means the overall price of goods and services measured by the Consumer Price Index was 6.6% higher in August 2026 than it was a year earlier.
The increase may look small on paper, but for households already dealing with expensive food, transport and other essentials, even another rise can make a noticeable difference in monthly spending.
Food and non-alcoholic beverages recorded a 9% increase over the year, making them one of the biggest contributors to the inflation rate. Transport prices were even higher, rising 15.7% compared with August last year. Housing, water, electricity, gas and other fuels increased by 3.6%.
Together, those three areas account for more than half of the weighting used in Kenya's consumer price basket, meaning changes in their prices have a significant effect on the overall inflation figure.
Transport remains a major headache
Transport was one of the strongest sources of price pressure during the month.
The 15.7% annual increase means getting around has become substantially more expensive compared with the same period last year. Higher transport costs also tend to affect other parts of the economy because businesses have to spend more moving goods from suppliers to shops and customers.
For ordinary Kenyans, the impact can be felt through higher fares, more expensive deliveries and increased costs for businesses that depend heavily on vehicles.
The pressure has also been linked to fuel costs and the wider effects of instability in global energy markets.
Food prices continue to squeeze families
Food remains an even bigger part of the inflation story.
Prices for food and non-alcoholic beverages were 9% higher than a year earlier, contributing 2.6 percentage points to the overall inflation rate.
Some individual food items did become cheaper during August.
The average price of a two-kilogram packet of sifted maize flour fell from about KSh157.15 in July to KSh152.89. Tomato prices also declined during the month, while some cooking oil and fortified maize flour prices recorded smaller reductions.
But a month-to-month decline does not necessarily mean food has become cheap again.
Tomatoes, for example, were still significantly more expensive than they were a year earlier despite the August reduction. That distinction matters for households because people feel the cumulative increase in prices over time, not just whether something became slightly cheaper from one month to the next.
The overall price increase was 0.4% in August
On a month-to-month basis, Kenya's Consumer Price Index increased by 0.4% between July and August.
The index rose from 155.20 in July to 155.85 in August.
Core inflation, which strips out some of the more volatile components, also moved higher. It reached 3.4% in August, compared with 3.2% in July.
That suggests some of the price pressure is coming from areas beyond food and other volatile items.
Kenya's inflation rate nevertheless remains within the Central Bank of Kenya's target range of 2.5% to 7.5%. The latest figure is, however, getting closer to the upper end of that range.
Some household costs actually fell
The August figures were not all about rising prices.
Diesel fell by about 2.2% during the month, with the average price dropping from roughly KSh224.04 per litre to KSh219.04. The average price of a 13-kilogram LPG cylinder also edged down slightly.
Sifted maize flour and tomatoes recorded monthly declines as well.
Those reductions provide some relief, but they have not been enough to reverse the broader increase in the cost of living.
For businesses, the situation is equally complicated. Lower prices for some inputs can help, but higher transport, food and other operating costs can still make it harder for companies to keep prices low.
Inflation is becoming a bigger issue for Kenyan households
The latest figures come after several months of elevated inflation.
According to Central Bank of Kenya data, the 12-month inflation rate was 6.49% in July, after reaching 6.68% in May.
That means the current increase is part of a broader period in which Kenyan consumers have continued to face relatively high prices.
For a household earning the same income it earned a year ago, a 6.6% increase in the general price level means that the same amount of money does not stretch as far as it once did.
Someone spending KSh20,000 a month on the basket of goods and services affected by inflation would, in broad terms, need more money today to buy an equivalent basket than they did a year ago.
The effect is particularly noticeable for families that spend a large share of their income on food and transport because those categories have experienced some of the strongest price increases.
The pressure extends beyond Nairobi
Inflation is measured nationally, but its effect is not identical everywhere.
Households in rural areas can face different food prices depending on harvests, supply and transportation costs, while people in major towns may feel transport and housing costs more sharply.
That is why the national 6.6% figure does not necessarily mean every Kenyan household experienced exactly the same increase.
For many families, however, the underlying story is familiar: food remains expensive, getting around costs more and household budgets continue to face pressure.
The latest KNBS figures put that experience into numbers.
Kenya's annual inflation has now reached 6.6%, up from 4.5% in August last year, when food inflation stood at 8.3% and transport prices were considerably lower than their current annual rate.
As August comes to an end, the new inflation figures offer a clear picture of the challenge facing Kenyan consumers and businesses. Prices are still rising, and while some individual items have become cheaper, the overall cost of maintaining a household remains considerably higher than it was a year ago.