Kenya's annual inflation rate has increased to 7.3% in October 2026, up from 6.8% recorded in September. This rise is largely attributed to higher prices of food, transport, and fuel. The data, released by the Kenya National Bureau of Statistics (KNBS) on Friday, October 30, shows that non-core inflation, which captures volatile items such as food, fuel, and energy, stood at 15.1% during the month.
The KNBS data indicates that among the items that recorded the sharpest price increases were Irish potatoes, whose prices rose by 34.9%, followed by diesel at 32.5%, and cabbages at 29.1%. Petrol prices increased by 22.8%, while city bus and matatu fares rose by 18.2%. Other food items that recorded notable price increases included fresh packed cow milk, which rose by 14.4%, beef with bone at 12.5%, and white wheat flour at 9.1%.
Cooking oil prices increased by 5.1%. The KNBS data further indicates that the three broad expenditure categories of food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels were the main drivers of inflation, recording annual price increases of 10.2%, 17.1%, and 3.7%, respectively. These three categories account for more than 57% of the total weight in the Consumer Price Index (CPI) basket.
The rise in inflation was reflected in both core and non-core measures. Core inflation increased from 4.0% in September to 4.3% in October, while non-core inflation rose from 14.0% to 15.1%. The overall Consumer Price Index increased from 156.47 in September to 157.60 in October, translating to a monthly inflation rate of 0.7%.
However, some commodities recorded price declines, with sugar prices falling by 11.1% compared to October 2025. The October inflation reading is the highest since July 2023, when annual inflation also stood at 7.3%, underscoring renewed pressure on household budgets and business operating costs.
The CPI measures changes in the prices of a basket of goods and services commonly consumed by households. The KNBS collects retail price data from urban markets across 50 data collection zones nationwide. This data collection process helps to provide an accurate picture of the inflationary trends in the country.
The increase in inflation is likely to have implications for household budgets and business operating costs. With food and fuel prices being major contributors to the inflationary pressures, households may have to adjust their spending patterns to accommodate the rising costs. Businesses, on the other hand, may have to review their pricing strategies to remain competitive in the market.
Key points
- Kenya's annual inflation rate rose to 7.3% in October 2026.
- Non-core inflation, which captures volatile items, stood at 15.1% during the month.
- The three main drivers of inflation were food and non-alcoholic beverages, transport, and housing, water, electricity, gas, and other fuels.
