Food, transport costs squeeze budgets as inflation hits 6.8 per cent

Kenya’s annual inflation rate rose to 6.8 per cent in September from 6.6 per cent in August, putting renewed pressure on households as the cost of living remains high.

The Kenya National Bureau of Statistics (KNBS) attributed the increase to higher prices of food, transport and housing. The Consmer Price Index rose by 0.4 per cent to hit 156.47 in September from 155.85 in August.

“Annual consumer price inflation was 6.8 per cent in September 2026, as measured by the Consumer Price Index. This implies that the general price level was 6.8 per cent higher in September 2026 than it was in September 2025,” KNBS said.

“The price increase was primarily driven by a rise in prices of items in the food and non-alcoholic beverages (9.5 per cent), transport (15.6 per cent) as well as housing, water, electricity, gas and other fuels (3.2 per cent) over the one year,” it added.

Those three divisions account for more than 57 per cent of the total weight across the 13 major expenditure categories, meaning their pain is felt in nearly every Kenyan household.

The data came out on the day President William Ruto launched a mega Dangote-backed refinery in Lamu.

While the refinery, backed by Africa’s richest man Aliko Dangote, is projected to process 700,000 barrels of crude oil per day and create about 60,000 jobs, for many Kenyans, the promise of future jobs contrasts sharply with the prices they paid this month.

A half litre of fresh packed cow milk rose to Sh61.23 from Sh57.74 in August, a six per cent monthly increase and 9.4 per cent higher than a year ago. Fresh unpacked cow milk climbed by 5.8 per cent month-on-month to Sh77.54 per litre, while UHT long-life milk jumped eight per cent to Sh61.64 per 500ml.

A two-kilogramme packet of sifted maize flour eased slightly to Sh152.00, but the cost of cooking oil (salad) rose to Sh359.36 per litre. Wheat flour (white) rose 4.5 per cent month-on-month to Sh181.11 for a 2kg packet and is up 6.9 per cent year-on-year.

Beef with bones rose to Sh782.68 per kilogramme, up 0.7 per cent monthly and 12.1 per cent annually. Kale (sukuma wiki) climbed 1.1 per cent to Sh122.49 per kilogramme and is 32.5 per cent higher than a year ago. Cabbages jumped 6.2 per cent month-on-month to Sh79.16 and are up 25.8 per cent year-on-year.

Irish potatoes rose 3.3 per cent to Sh121.98 per kilogramme and are 33.6 per cent higher than last year. Oranges climbed 2.0 per cent to Sh127.22 per kilogramme and are up 14.8 per cent annually. Beans rose 1.2 per cent to Sh182.76 per kilogramme.

Sugar fell slightly to Sh165.79 per kilogramme, down 0.4 per cent monthly and 10.5 per cent year-on-year. Spinach dropped 2.1 per cent to Sh127.32 per kilogramme, while tomatoes fell 4.1 per cent to Sh106.44 per kilogramme.

Charcoal rose 1.6 per cent to Sh99.52 per kilogramme and is up 7.2 per cent year-on-year. Gas/LPG eased 0.2 per cent to Sh3,419.24 for a 13kg cylinder but remains 8.5 per cent higher than a year ago. Kerosene was unchanged at Sh192.56 per litre but is up 23.5 per cent annually.

Electricity costs brought rare relief. A 50-kilowatt-hour unit fell 2.4 per cent to Sh1,258.21 and the 200kWh unit dropped 2.2 per cent to Sh5,533.76, though both remain lower than a year ago.

Transport remained the sharpest thorn. Although country bus and matatu fares for inter-town travel fell 1.0 per cent and city fares eased 0.3 per cent month-on-month, transport inflation stood at 15.6 per cent year-on-year and contributed 1.6 percentage points to overall inflation. A country bus ticket from Isiolo to Nairobi fell to Sh1,200 from Sh1,500 in August, but it remained 20 per cent higher than the Sh1,000 charged a year ago.

Petrol and diesel prices were unchanged month-on-month at Sh214.95 and Sh219.04 per litre, but they are up 15.8 per cent and 26.9 per cent respectively over the year. International air travel costs rose 8.1 per cent in a month, KNBS said. House rent for a bedsitter remained unchanged at Sh7,690.07 but went up by 0.7 per cent year-on-year.

The cost of personal care items also climbed. Toilet paper and tissue paper rose 1.3 per cent month-on-month, while body lotion and hair dressing each rose 0.4 per cent. Barber services increased 0.3 per cent. Detergent and laundry soap both rose 0.5 per cent.

In the health division, dewormers recorded the largest increase at 0.8 per cent, while antibiotic prices rose 0.2 per cent and medicines for cholesterol and blood pressure declined 0.1 per cent.

Recreation and culture costs rose, with pet food up 1.4 per cent and religious books up 1.3 per cent. Exercise books declined 0.2 per cent. Private secondary tuition fees rose 0.4 per cent, especially in international schools, while pre-primary fees fell 0.1 per cent.

Hotel and restaurant beverages recorded the largest increase in the restaurants and accommodation division at 0.5 per cent, followed by hotel boarding at 0.4 per cent. Food from canteens and kiosks declined 0.2 per cent.

Core inflation, which excludes volatile food and fuel items, rose to four per cent in September from 3.4 per cent in August. Non-core inflation, largely food and energy, stood at 14.0 per cent. Core inflation contributed 4.2 percentage points to the headline rate, while non-core contributed 2.6 points. Food and non-alcoholic beverages alone contributed 2.8 points.

The financial strain is visible beyond the statistics. A study by Odipo Dev and Amnesty International Kenya documented 1,292 protests between January 2025 and June 2026, with economic grievances the leading driver. In May 2026, anti-fuel-hike protests erupted as motorists and traders complained about transport and daily living costs.

The Ruto government has pointed to macroeconomic gains, including a stable shilling and inflation well below the double-digit levels seen in previous years.

Treasury Cabinet Secretary John Mbadi has faced criticism over remarks suggesting Kenyans are better off because of increased consumption of soft drinks, comments that opposition and civil society leaders say illustrate how out of touch the administration is.

Analysts say the widening divide between official rhetoric and kitchen-table reality is becoming a political liability. With the Independent Electoral and Boundaries Commission setting the election period, Ruto’s administration must find ways to visibly ease the burden on households if it hopes to secure victory in 2027, analysts said.

For now, cash-strapped Kenyans are cutting back, buying less milk, substituting cheaper vegetables and reducing matatu trips.

bngugi@standardmedia.co.ke