Matatu Fares and Gas Prices Rise as Maize Flour Costs Drop – Report

The Kenya National Bureau of Statistics (KNBS) has reported that transport and household energy costs in Kenya experienced a notable surge in August, as matatu fares and gas prices increased.

In a survey report released on August 29, KNBS also reported that staple food prices offered some relief to Kenyan consumers, as maize flour prices dropped in the month under review.

The report shows that matatu fares on long-distance routes surged, with the Mombasa to Nairobi country bus fare increasing by 15.4%, from KSh 1,300 to KSh 1,500.

Matatu fares and gas prices hike

This sharp rise contributed significantly to the 4.4% annual inflation rate recorded in the transport sector.

“The increase in long-distance fares reflects rising operational costs and seasonal demand pressures,” the report noted.

Local transport was also affected, with tuk-tuk fares rising by 1.5%, further straining household budgets.

As per the report, fuel prices remained relatively stable, with petrol dropping by 0.5% while diesel prices remained unchanged, suggesting that fare hikes were not directly linked to fuel costs.

In the energy sector, Liquefied Petroleum Gas (LPG) prices increased by 0.4%, contributing to the rising cost of living for urban households.

Also Read: KNBS Reports Growth Across All Kenyan Economic Sectors

This increase came despite a slight drop in electricity prices, with the cost of 50kWh falling by 2.3%.

“Gas prices edged up slightly, continuing a trend of gradual increases in household energy expenses,” KNBS stated.

Maize flour cost drops

On the food front, the KNBS reported some relief as the prices of fortified maize flour dropped by 1.7%, while those of sifted maize flour fell by 1.5%, easing pressure on household food budgets.

Additionally, price drops were observed for items such as fresh unpacked cow milk (-0.9%), beans (-0.7%), loose maize grain (0.4%), and oranges (-0.7%).

On the other hand, notable increases were recorded for vegetables, with cabbage prices registering the highest rise at 6.3%, followed by carrots (2.4%), sukuma wiki (1.9%), and tomatoes (1.2%).

Also Read: New Report Reveals Where Kenya Imports Most Goods

Prices of wheat flour, wheat, and onion bulbs and leeks rose by 0.9% each, while prices of potatoes increased by 0.7%.

Overall, the Consumer Price Index (CPI) rose by 0.3% month-on-month, from 145.74 in July to 146.21 in August, reflecting the mixed trends in commodity pricing.

Core inflation was 3.0 percent in August 2025, as the core index decreased from 129.59 in July 2025 to 129.57 in August 2025. Non-core inflation was 9.2% during the same period.

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