Kenya’s inflation climbed to 6.5 percent in July 2026, the highest level recorded in nearly two years, according to the latest Kenya National Bureau of Statistics (KNBS) Consumer Price Index (CPI) and Inflation Report.
The report released on Friday, July 31, shows that the overall Consumer Price Index (CPI) increased from 154.91 in June 2026 to 155.20 in July 2026, translating to a monthly inflation rate of 0.2 per cent.
On a year-on-year basis, inflation stood at 6.5 per cent in July 2026, meaning the general price level was 6.5 per cent higher compared to July 2025.
KNBS data shows that the increase was largely driven by higher prices in key household expenditure categories, with transport, food and non-alcoholic beverages, and housing, water, electricity, gas and other fuels recording some of the biggest increases.
“Annual consumer price inflation was 6.5 per cent in July 2026, as measured by the
Consumer Price Index (CPI). This implies that the general price level was 6.5 per cent
higher in July 2026 than it was in July 2025,” KNBS said.“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (9.0%); Transport (15.6%), and Housing, Water, Electricity, Gas and Other Fuels (3.2%) over the one-year period. These three divisions together account for over 57 per cent of the total weight across the 13 major expenditure categories.”
Inflation Rises to 6.5% on Higher Food, Fuel and Transport Costs
According to the KNBS CPI report, transport recorded the highest annual price increase at 15.6 per cent between July 2025 and July 2026.
The rise in transport costs continues to put pressure on households and businesses, as higher commuting expenses and the cost of moving goods often affect prices across the economy.
The food and non-alcoholic beverages category increased by 9.0 per cent year-on-year, making it the second-largest contributor to inflation.
The category carries the biggest weight in Kenya’s inflation basket at 32.9094 per cent, meaning changes in food prices have a significant impact on the overall inflation rate.
Between June and July, tomato prices fell by 3.7 per cent, carrots by 3.6 per cent, and sifted maize flour by 1.6 per cent.
However, Irish potatoes increased by 2.1 per cent, while mango prices rose by 3.2 per cent.
The housing, water, electricity, gas and other fuels division, which has a weight of 14.6124 per cent, recorded an annual increase of 3.2 per cent.
The category also recorded the highest monthly increase among major household expenses, rising by 0.5 per cent between June and July 2026.
Country bus and matatu fares declined by 0.3 per cent, but boda boda fares and city matatu fares increased by 0.3 per cent.
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How Prices Changed Across the 13 CPI Categories
KNBS data covering the 13 Classification of Individual Consumption by Purpose (COICOP) divisions shows that prices increased across most categories over the one-year period.
| CPI Division | Weight (%) | Monthly Change (July 2026/June 2026) | Annual Change (July 2026/July 2025) |
|---|---|---|---|
| Food and Non-Alcoholic Beverages | 32.9094 | 0.1% | 9.0% |
| Alcoholic Beverages, Tobacco and Narcotics | 3.3289 | 0.4% | 2.6% |
| Clothing and Footwear | 2.9914 | 0.2% | 2.2% |
| Housing, Water, Electricity, Gas and Other Fuels | 14.6124 | 0.5% | 3.2% |
| Furnishings, Household Equipment and Maintenance | 3.7372 | 0.4% | 2.4% |
| Health | 2.9116 | 0.2% | 2.8% |
| Transport | 9.6468 | 0.3% | 15.6% |
| Information and Communication | 7.7840 | 0.0% | 0.6% |
| Recreation, Sport and Culture | 1.7219 | 0.2% | 2.5% |
| Education Services | 5.5620 | 0.0% | 3.1% |
| Restaurants and Accommodation Services | 8.0991 | 0.2% | 2.9% |
| Insurance and Financial Services | 2.2423 | 0.1% | 0.8% |
| Personal Care and Miscellaneous Goods and Services | 4.4532 | 0.2% | 2.4% |
| Overall CPI | 100.0000 | 0.2% | 6.5% |
Other Categories Record Moderate Increases
Beyond food, transport and housing, other household expenses also recorded increases.
Education services rose by 3.1 per cent, while restaurants and accommodation services increased by 2.9 per cent.
Health costs increased by 2.8 per cent, followed by alcoholic beverages, tobacco and narcotics at 2.6 per cent.
The cost of recreation, sport and culture rose by 2.5 per cent, while furnishings, household equipment and routine household maintenance increased by 2.4 per cent.
The smallest annual increases were recorded in information and communication at 0.6 per cent and insurance and financial services at 0.8 per cent.
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Inflation Nears Central Bank Target Ceiling
The 6.5 per cent inflation rate places Kenya closer to the Central Bank of Kenya’s upper inflation target limit of 7.5 per cent.
The rise means households are spending more to maintain the same level of consumption compared to a year earlier, particularly on essential needs such as food, transport, rent and utilities.
For businesses, increased costs in transport, energy and household inputs could affect operating expenses and pricing decisions.
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