Food, transport costs drive Kenya’s inflation up to 4.5 per cent in August
In its August Consumer Price Index (CPI), KNBS reported that the food and non-alcoholic beverages index rose by 8.3 per cent, transport increased by 4.4 per cent, while housing, water, electricity, gas and other fuels went up by 0.8 per cent year-on-year.
Food, non-alcoholic beverages and transport costs pushed Kenya’s inflation rate to 4.5 per cent in August 2025, up from 4.1 per cent in July, according to the Kenya National Bureau of Statistics (KNBS).
In its August Consumer Price Index (CPI), KNBS reported that the food and non-alcoholic beverages index rose by 8.3 per cent, transport increased by 4.4 per cent, while housing, water, electricity, gas and other fuels went up by 0.8 per cent year-on-year.
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KNBS noted that these three categories accounted for more than 57 per cent of the total weight across the 13 major expenditure divisions.
The CPI measures the cost of purchasing a fixed basket of goods and services, comparing current prices to those of a base period, which for the current index is February 2019. The overall index rose from 145.74 in July 2025 to 146.21 in August 2025, translating to a monthly inflation rate of 0.3 per cent.
Between July and August 2025, consumer prices showed mixed changes. The KNBS report indicates that electricity costs fell during the month, with the price of 50 kilowatt-hours dropping from Sh1,288.82 in July to Sh1,259.65 in August, while 200 kWh declined from Sh5,656.22 to Sh5,539.54. Petrol prices also dipped slightly from Sh187.37 to Sh186.37 per litre.
“In contrast, passenger transport costs rose sharply, with the country bus or matatu fare for the Mombasa to Nairobi route increasing from Sh1,300 to Sh1,500,” KNBS said.
In August, the alcoholic beverages, tobacco and narcotics division registered mixed movements. The price of beer (lagers and stouts) fell by 0.1 per cent, while spirits rose by 0.5 per cent. Over the twelve months to August 2025, the category recorded a 3.4 per cent increase, with miraa (khat) posting the highest price rise at 1.6 per cent.
The clothing and footwear division also showed varied trends. The cost of men’s leather shoes decreased by 0.3 per cent and men’s shirts by 0.1 per cent. However, prices rose for other items, with kanga or kikoi up by 1.1 per cent, girls’ school uniforms by 0.4 per cent, and men’s suits by 0.6 per cent.
In furnishings, household equipment and routine household maintenance, the index dropped by 0.2 per cent overall. Price declines were noted in detergents (-1.4 per cent), mattresses (-0.3 per cent), and laundry or bar soap (-0.1 per cent).
Education costs in August also showed mixed trends. School textbooks for tertiary institutions decreased by 0.3 per cent, while exercise books slipped by 0.1 per cent. On the other hand, prices for secondary school textbooks and tour or honeymoon packages both rose by 0.1 per cent.
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