KNBS: Fish, vegetable prices jump by double digits despite easing inflation

Fish and vegetable prices rose by double digits in 2025 even as Kenya's overall inflation eased to 4.1 per cent, a Kenya National Bureau of Statistics (KNBS) report shows.

The KNBS 2026 Economic Survey, released in Nairobi on Wednesday, April 29 and presented by Director General Macdonald Obudho, shows fish and seafood prices rose 16 per cent while vegetables, tubers and pulses climbed 13.4 per cent during the year, squeezing households that depend on these as dietary staples.

The increases came against a broader easing of price pressures, with overall inflation declining from 4.5 per cent in 2024 and a peak of 7.7 per cent recorded in both 2022 and 2023.

Sugar prices fell 3.2 per cent, cereals dropped 2.4 per cent, milk and dairy products declined 0.5 per cent, offering some relief to consumers.

The survey puts gross domestic product (GDP) at Sh17.6 trillion, with GDP per capita at $2,549 (Sh329,379).

The economy grew by 4.6 per cent in 2025, slowing from 4.7 per cent recorded in 2024.

However, the growth bypassed most workers, with 18.1 million people, or 83.8 per cent of the workforce, remaining in informal employment.

Only 3.5 million workers, or 16.2 per cent, hold formal jobs.

Formal sector employment grew by 4 per cent in 2025, with the public sector recording the faster pace at 4.6 per cent to reach 1.07 million jobs, while the private sector added workers at a slower 2.5 per cent rate to 2.245 million.

Manufacturing led private sector employment with 366,600 workers, followed by agriculture, forestry and fishing at 311,800 and wholesale and retail trade at 281,000.

Agriculture, forestry and fishing remained the single largest contributor to the economy at 23.2 per cent of GDP, though the sector grew at only 3.1 per cent, the slowest among the top five contributors.

Financial and insurance services recorded the fastest growth at 6.5 per cent, followed by real estate at 3.9 per cent.

The Central Bank of Kenya (CBK) cut its benchmark rate to 9 per cent in December 2025 from 11.25 per cent a year earlier, with commercial bank lending rates falling in tandem from 16.89 per cent to 14.82 per cent. Broad money supply rose to Sh6.73 trillion from Sh6.05 trillion in 2024.

On the external front, the trade deficit widened to Sh1.65 trillion from Sh1.59 trillion in 2024. Exports grew by a marginal 0.6 per cent to Sh1.12 trillion while imports rose 2.5 per cent to Sh2.77 trillion.

Diaspora remittances fell to Sh661.2 billion from Sh674.1 billion in 2024, worsening the current account deficit (CAD) from Sh285.5 billion to Sh373.3 billion.

Tea remained Kenya's top export at Sh187.1 billion, ahead of cut flowers at Sh103.3 billion and vegetables and fruits at Sh99.8 billion.

China was the top import source at Sh671.2 billion, with the United Arab Emirates (UAE) second at Sh324.1 billion and India third at Sh293 billion. Uganda was the top destination for Kenyan exports at Sh162.3 billion.

Tourism provided a measure of relief, with arrivals rising 6.2 per cent to 2.55 million visitors.

Nearly half, 47.8 per cent, came for holiday. Hotel bed occupancy rose to 11.56 million nights from 10.26 million in 2024.

Visits to national parks and game reserves grew 5.7 per cent to 3.95 million, though museum and heritage site visits declined from 1.15 million to 1.11 million.

Construction rebounded, expanding 6.8 per cent after contracting 0.7 per cent in 2024. Cement consumption rose 20.3 per cent to 10,280 metric tonnes. The sector employed 238,300 workers, up from 233,300 the previous year.

Port of Mombasa throughput grew 11.2 per cent to 45.6 million metric tonnes.

The Standard Gauge Railway (SGR) generated Sh21.4 billion in passenger and freight revenue, an 18.6 per cent increase.

The survey also flagged a cybersecurity deterioration, with system vulnerability incidents rising from 3.27 million to 12.1 million, a nearly fourfold jump, while malware attacks grew from 132,939 to 174,531 in 2025.

On health, the Social Health Authority (SHA) had enrolled over 20.9 million members. Health facilities rose to 16,713 from 15,984, while registered live births increased to 1.14 million.

National government health expenditure is projected to rise to Sh151 billion in 2025/26 from Sh123 billion previously.

A special chapter on women's economic empowerment found that only 36.3 per cent of Kenyan women aged 18 and above, about 4.9 million women, are economically empowered, with the urban rate at 41.5 per cent against 33.6 per cent in rural areas.

Residential property prices rose 16.8 per cent in the fourth quarter of 2025, with the overall Residential Property Price Index (RPPI) reaching 117.7, up from a base of 100.8 in the fourth quarter of 2022.