Kenya’s annual inflation rate eased to 6.4% in June 2026, down from 6.7% in May, according to the Kenya National Bureau of Statistics (KNBS). The slowdown was driven by lower fuel, electricity and prices of some food items.
Fuel played a central role in the relief. Between May and June, petrol prices dipped 0.1%, while diesel recorded the sharpest drop at 6.3%. The decline followed action by the energy regulator: the Energy and Petroleum Regulatory Authority’s mid-June review cut diesel prices by Sh10 per litre and reduced super petrol prices as well. Electricity costs also fell, with the average price of 50 kWh dropping 1.2% and 200 kWh falling 1.1% over the same period. Select food items softened too, as tomatoes fell 2.4%, brown wheat flour dropped 1.2%, beans declined 0.5% and beef with bones eased 0.1%.
Despite the monthly improvement, KNBS data shows food remains a heavy burden on households year on year. Food and Non-Alcoholic Beverages inflation stood at 8.6% by June 2026, and staples that dominate Kenyan kitchens saw steep annual jumps. Sukuma wiki (kale) rose to Ksh114.44 per kilogramme, a 26.6% increase from June 2025, while cabbages climbed 25.3% over the year. Tomatoes, though slightly cheaper month on month, were still 40.5% higher than a year earlier, and cooking oil edged up from Ksh355.79 to Ksh358.63 per litre between May and June.
Transport remained the biggest annual pressure point. The category posted the highest annual increase among major expenditure groups at 16.1%, even as diesel prices in Nairobi fell from Ksh232.86 to Ksh222.86 per litre month on month. Combined, food, transport and housing related costs account for more than 57% of the CPI’s total weight, meaning shifts in these categories dominate the headline figure.
The Central Bank of Kenya, meanwhile, has held its benchmark lending rate steady, part of a cautious stance after ten consecutive rate cuts had trimmed 4.25 percentage points since August 2024.
