Kenya’s annual inflation rate rose to 6.8 percent in September 2026 from 6.6 percent in August, according to the Kenya National Bureau of Statistics (KNBS). It is the country’s highest level since January 2024.
The September reading extends a steady climb, following increases from 6.4 percent in June to 6.5 percent in July and 6.6 percent in August. It was also the sixth straight month above the central bank’s 5 percent midpoint target. With the Monetary Policy Committee having projected 6.5 percent increase.
Food was the largest contributor to the increase. Food prices rose 0.9 percent in the month and 9.5 percent over the year, adding 2.8 percentage points to the headline rate. Among individual items, UHT long life milk rose 8 percent, cabbage 6.2 percent, fresh milk 6 percent and wheat flour 4.5 percent.
Transport recorded the highest annual inflation of any major division at 15.6 percent, while housing, water, electricity, gas and other fuels rose 3.2 percent. Together, these three divisions make up more than 57 percent of the consumer price basket. Transport movements were mixed within the month, with intertown bus and matatu fares falling 1.0 percent even as international flight costs rose 8.1 percent.
Underlying price pressures also strengthened. Core inflation, which excludes more volatile prices, rose to 4 percent from 3.4 percent in August, while non-core inflation eased to 14 percent from 14.7 percent. The Consumer Price Index itself rose 0.4 percent on the month, from 155.85 to 156.47.
Food prices have faced pressure from drought, the Iran war, an expected El Niño weather pattern and disruptions in the Black Sea region. Whether these factors continue to push prices higher will likely shape the Central Bank of Kenya’s next policy decisions.
