January inflation hits 6-month low despite rise in food prices
Business
By
Macharia Kamau
| Jan 31, 2026
The cost of living fell slightly in January following a decline in fuel prices, even as prices of some basic food items, including the maize-flour staple, remained stubbornly high.
The inflation rate this month dropped to 4.4 per cent, a six-month low, after oscillating between 4.5 per cent and 4.6 per cent between August and December 2025.
The inflation rate, or the general increase in the cost of goods, dropped marginally on account of lower prices of petroleum products.
Fuel dropped by about Sh2 per litre in January, resulting in lower transportation costs, according to data by the Kenya National Bureau of Statistics (KNBS).
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The data further shows that Kenyans are worse off today than they were in January 2025 when inflation stood at 3.3 per cent.
“During the period between December 2025 and January 2026, prices of transport-related items showed mixed trends. Country bus and matatu fares for travel between towns decreased by 1.9 per cent.
Additionally, prices for petrol and diesel decreased by 1.1 per cent and 0.6 per cent, respectively,” said KNBS.
There was, however, an increase in the cost of many food items, including maize flour, which increased by 6.4 per cent to Sh154 per two-kilogramme packet compared to Sh145.12 in December.
Other essentials that registered an increase include cabbages (9.3 per cent), sukuma wiki (four per cent) and electricity prices (3.4 per cent).
Items such as sugar and cooking oil, however, registered lower prices when compared to prices in December.
“Between December 2025 and January 2026, prices of selected food commodities showed mixed movements… with notable declines and increases recorded. Prices of sugar, mangoes and cooking oil (salad) declined by three per cent, 3.2 per cent and 0.1 per cent, respectively,” said KNBS.
“In contrast, prices of cabbages, fortified maize flour, kale (sukuma wiki) and Irish potatoes increased by 9.3 per cent, 6.7 per cent, four per cent and 3.4 per cent, respectively.”
Food prices are expected to come under renewed strain as an acute drought threatens key agricultural regions, posing a further challenge to household budgets and economic stability.
At the moment, humanitarian organisations say over 2 million people, mostly in Kenya’s arid and semi-arid lands (ASALs), are facing severe drought conditions, following the poor October –December short rains
The drought is expected to ease in the coming months, with most parts of the country expected to receive heavy rainfall during the March–May long rains season, according to a forecast by the IGAD Climate Prediction and Applications Centre (ICPAC).