Kenya’s inflation rate rose to 4.5% in August 2025, up from 4.1% in July, driven largely by rising food and transport costs, according to the latest figures released by the Kenya National Bureau of Statistics (KNBS).
The report paints a clear picture of the strain Kenyan households are facing as basic commodities and essential services continue to rise in price.
Data shows that non-core inflation surged to 9.2%, with food prices leading the increase. Tomatoes recorded the sharpest jump, soaring by 38.3%, while sukuma wiki (collard greens) rose by 17.0%, making them less affordable for many households that depend on them as staple vegetables.
Sugar and maize flour, both critical for Kenyan diets, also contributed significantly to inflationary pressures. Fortified maize flour increased by 18.7%, while sugar prices surged by 17.9%. These increases come at a time when many families are already struggling to stretch their incomes, intensifying the cost-of-living crisis.
Other notable rises in the core inflation basket included cigarettes (8.7%) and cooking oil (4.2%). In contrast, some essential staples such as wheat flour (2.2%) and beans (0.7%) recorded only mild increases, offering slight relief to consumers.
Beyond food, transport costs also became a major driver of inflation. Bus and matatu fares rose by 15.4%, further burdening workers and students who rely on public transport daily. Analysts link this increase to higher operational costs, partly driven by fluctuating fuel prices and policy changes in the sector.
On the energy front, electricity prices saw modest increases, with 200 kilowatts rising by 3.7% and 50 kilowatts by 2.0%. While the rise was not as steep as food prices, it still added to household expenses. Petrol prices, however, remained relatively stable, inching up by 1.6%, offering some cushion against a sharper inflation climb.
The core inflation rate, which excludes volatile food and fuel prices, was recorded at 3.0%. This basket accounts for 81.1% of the overall Consumer Price Index (CPI), according to the KNBS. Although relatively stable, it still reflects the gradual rise in the cost of goods and services beyond food and energy.
The inflationary trend poses a challenge to both consumers and policymakers. For households, the price hikes mean reduced purchasing power and increased pressure on disposable incomes. Families are likely to cut back on non-essential spending as more of their earnings go toward food and transport.
For policymakers, particularly the Central Bank of Kenya (CBK), the latest inflation figures will influence monetary policy decisions. While the inflation rate remains within the government’s target range, the sharp increases in food prices raise concerns about supply chain stability and the impact of unpredictable weather patterns on agricultural output.
Experts warn that unless food supplies stabilize and transport costs ease, inflationary pressures could persist in the coming months. The country’s dependence on rain-fed agriculture makes food prices vulnerable to weather shocks, while global fuel price trends continue to influence local transport and energy costs.
The CBK and KNBS have assured the public that they will continue monitoring inflation trends closely. Meanwhile, Kenyans across the country are left grappling with the everyday reality of higher grocery bills, increased fare charges and tighter household budgets.
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