Kenya has been ranked 7th in the latest 2025 mid-year cost of living index among 10 East and Southern African countries, according to Numbeo data.
The ranking considers a combination of everyday expenses, including groceries, rent, and restaurant prices.
Further, the report, which evaluates countries based on key indices such as rent, groceries, restaurant prices, and overall purchasing power, places Kenya behind Rwanda but ahead of Uganda, Tanzania, and Madagascar in terms of the general cost of living.
With a Cost of Living Index of 28.5 and a Rent Index of 8.2, the data proves that Kenya is more affordable to live in than many of its neighbors.
The Cost of Living Plus Rent Index, which combines housing and everyday expenses, stands at 19.6, indicating manageable urban living costs, in comparison with other East African Countries.
On the other hand, Rwanda posted a higher Cost of Living Index at 29.7, while Uganda (25.4), Tanzania (24.1), and Madagascar (22.2) in affordability.
However, Ethiopia topped the list as the most expensive country in the region with a Cost of Living Index of 41.6 and significantly higher grocery and rent costs.
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Ranking of Kenya Vs Other East African Countries
| Rank | Country | Cost of Living Index | Local Purchasing Power |
|---|---|---|---|
| 1 | Ethiopia | 41.6 | 13.2 |
| 2 | Mauritius | 37.0 | 55.9 |
| 3 | Mozambique | 35.7 | 34.6 |
| 4 | Zambia | 33.5 | 24.7 |
| 5 | Zimbabwe | 33.4 | 30.7 |
| 6 | Rwanda | 29.7 | 23.2 |
| 7 | Kenya | 28.5 | 36.1 |
| 8 | Uganda | 25.4 | 21.1 |
| 9 | Tanzania | 24.1 | 35.6 |
| 10 | Madagascar | 22.2 | 14.8 |
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Food Prices and Purchasing Power
In terms of everyday essentials, Kenya’s Groceries Index is 30.1, while dining out reflects a Restaurant Price Index of 24.9, slightly higher than neighboring Uganda and Tanzania.
Additionally, Kenya shows strength in the Local Purchasing Power Index, scoring 36.1, the third highest after Mauritius (55.9) and Tanzania (35.6).
This means that, on average, Kenyans have better income-to-expense ratios than many of their neighbors, allowing for relatively stronger spending capacity.
By comparison, Ethiopia, which tops the list with the highest cost of living index (41.6), scores the lowest in purchasing power at just 13.2, meaning there is disparity between high expenses and limited income levels.
According to Numbeo, Madagascar is the most affordable country to live in among the ten surveyed, with a Cost of Living Index of 22.2 and the lowest Rent Index of 6.6.
However, its purchasing power is also limited at 14.8.
On the other hand, Mauritius is expensive but balances this with the highest purchasing power in the region.
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