High food prices, transport costs Push September Inflation to 6.8pc

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Kenya’s annual inflation rate rose to 6.8 per cent in September, as higher food and transport costs continued to put pressure on household budgets.

The Kenya National Bureau of Statistics (KNBS) said the general price level was 6.8 per cent higher in September 2026 than in the same month last year, up from 6.6 per cent in August.

The increase was mainly driven by Food and Non-Alcoholic Beverages, Transport, and Housing, Water, Electricity, Gas and Other Fuels, which recorded annual price increases of 9.5 per cent, 15.6 per cent and 3.2 per cent respectively.

The three categories account for more than 57 per cent of the total weight used to calculate inflation, making them key drivers of the cost of living.

On a monthly basis, inflation stood at 0.4 per cent in September, with the overall Consumer Price Index rising from 155.85 in August to 156.47.

Food prices remained a major source of pressure, with the food and non-alcoholic beverages index rising 0.9 per cent during the month.

KNBS data showed that the price of fresh packeted cow milk rose by 6 per cent between August and September, while fresh unpacketed cow milk increased by 5.8 per cent.

White wheat flour prices rose by 4.5 per cent, while cabbage increased by 6.2 per cent and UHT long-life milk by eight per cent.

Other food items recorded declines. Tomato prices fell by 4.1 per cent, spinach by 2.1 per cent, sifted maize flour by 0.6 per cent and sugar by 0.4 per cent.

The average price of a 500ml packet of fresh milk increased from Sh57.74 in August to Sh61.23 in September, while a two-kilogramme packet of white wheat flour rose from Sh173.35 to Sh181.11.

Transport remained the largest annual inflation driver, with prices in the division increasing 15.6 per cent over the year.

However, transport costs fell 0.4 per cent month-on-month, largely due to lower public transport fares. Country bus and matatu fares for inter-town travel declined by one per cent, while city fares fell 0.3 per cent.

The average fare on the Isiolo-Nairobi route dropped from Sh1,500 in August to Sh1,200 in September.

International air travel moved in the opposite direction, with prices rising 8.1 per cent during the month.

Household energy costs also recorded mixed movements. Electricity prices declined by 2.4 per cent for a 50-kWh consumption level and by 2.2 per cent for 200 kWh.

The average price of a 50-kWh electricity unit fell from Sh1,289.47 to Sh1,258.21, while the cost of 200 kWh declined from Sh5,658.80 to Sh5,533.76.

In contrast, charcoal prices increased 1.6 per cent during the month, while firewood prices rose 1.8 per cent. LPG prices fell marginally by 0.2 per cent.

Core inflation, which excludes more volatile items, rose to 4 per cent in September from 3.4 per cent in August. Non-core inflation stood at 14 per cent.

KNBS said core inflation contributed 4.2 percentage points to the overall 6.8 per cent inflation rate, while non-core inflation contributed 2.6 percentage points.

Food and non-alcoholic beverages contributed 2.8 percentage points to overall inflation, followed by transport at 1.6 percentage points.

The September inflation figures point to continued pressure on household purchasing power, particularly from food and transport, even as some energy and public transport costs eased during the month.