Kenya's inflation rate rises to 4.5 per cent in August

Kenya’s inflation rate rose to 4.5 percent in August, up from 4.1 percent in July, driven mainly by higher food, transport, and alcohol prices, according to the Kenya National Bureau of Statistics (KNBS).

KNBS’ August report shows food and non-alcoholic beverages rose 8.3 percent year-on-year, transport increased 4.4 percent, and housing, water, electricity, gas, and other fuels climbed 0.8 percent.

The Consumer Price Index rose from 145.74 in July to 146.21 in August, reflecting a monthly inflation rate of 0.3 percent.

Data also shows the cost of food and non-alcoholic beverages rose 8.3 percent in the 12 months to August.

In transport, petrol prices dropped 0.5 percent during the month, while diesel prices were unchanged. Still, transport costs rose 4.4 percent compared with August 2024.

In housing and utilities, electricity charges fell, with 50kWh band prices down 2.3 percent and 200kWh down 2.1 percent.

Kerosene prices also dropped by 0.6 percent. However, single-room rents rose 0.1 percent, and LPG gas prices increased 0.4 percent.

However, alcoholic beverages, tobacco, and narcotics recorded mixed shifts. Beer prices fell 0.1 percent, spirits rose 0.5 percent, and miraa posted the sharpest increase, up 1.6 percent month-on-month and 3.4 percent year-on-year.

Clothing and footwear rose 0.1 percent in August and 3.3 percent over 12 months. Health services increased 0.1 percent for the month and 3.3 percent annually.

In education, diploma fees fell 0.2 percent while private secondary school tuition climbed 0.8 percent. Overall, education costs rose 2.4 percent year-on-year.

Electricity, Transport Costs

Between July and August, electricity costs dropped from Sh1, 288.82 to Sh1,259.65 for 50kWh and from Sh5,656.22 to Sh5,539.54 for 200kWh.

Petrol prices declined slightly, from Sh187.37 to Sh186.37 per litre.

At the same time, transport costs rose sharply, with bus fares on the Mombasa- Nairobi route increasing from Sh1,300 to Sh1,500.