Kenya’s annual inflation rate held steady at 4.5% in August, offering relief from fears of runaway prices, according to the latest Consumer Price Index (CPI) report from the Kenya National Bureau of Statistics (KNBS).
- •Beneath the headline figure, households continue to grapple with stubbornly high food costs, particularly fresh vegetables, which are proving to be the biggest strain on family budgets.
- •The 12-month inflation rate was unchanged from July, anchored by declines in energy prices and stable costs in housing and utilities.
- •On a month-to-month basis, the CPI rose by 0.3%, reflecting a modest uptick in consumer prices.
The food and non-alcoholic beverages category- accounting for nearly a third of household spending- rose by 8.3% over the year. This made it the single largest contributor to the inflation rate, adding 2.7 percentage points to the overall 4.5%.
Within this category, vegetables emerged as the main drivers of the price surge. Cabbage prices jumped 6.3% in just one month, while carrots rose 2.4%, sukuma wiki 1.9%, and tomatoes 1.2%. The increases highlight the sensitivity of fresh produce to supply shocks, whether from weather disruptions, logistical bottlenecks, or seasonality.
At the same time, some staple items saw relief. Prices of fortified maize flour dropped 1.7%, sifted maize flour by 1.5%, and beans by 0.7% compared to July. Loose maize grain also eased slightly by 0.4%. While these declines eased the pressure, they were not enough to offset the spikes in fresh produce.
Energy Prices Offer Relief
One reason as to why overall inflation did not climb higher was the decline in electricity tariffs and fuel prices. The cost of 50kWh of electricity dropped by 2.3%, while the 200kWh band fell 2.1%. Petrol prices slid by 0.5% to KShs 186.37 per litre, while diesel remained flat.
Kerosene, used by many low-income households, also edged down 0.6%. These reductions helped ease household utility bills and transport costs, tempering the upward pressure from food.
However, the picture was mixed in the transport sector. While fuel was cheaper, passenger fares rose sharply. The average cost of a bus trip from Mombasa to Nairobi increased by 15.4% to KShs 1,500. Local fares also ticked up, with tuk-tuk charges climbing 1.5%.
Core vs. Non-Core Inflation
The report shows a sharp divergence between core and non-core inflation. Core inflation, which excludes volatile items like food and energy, remained subdued at 3.0%. In contrast, non-core inflation- dominated by food and transport- soared to 9.2%.
This gap underscores how inflation in Kenya is mostly driven by supply shocks in specific sectors. It also highlights why official inflation can feel “out of touch” with the lived experiences of households facing rising grocery and travel costs.
For Kenyan families, the picture is mixed. Falling electricity and fuel costs have eased some pressure, but grocery shopping is still a painful experience. It’s a reminder that while the official inflation rate signals stability, the day-to-day reality for households tells a different story.