Kenya records 4.5% inflation as cost of living rises

Kenya’s overall inflation rate climbed to 4.5% in August 2025, up from 4.1% in July, according to the latest data released by the Kenya National Bureau of Statistics (KNBS).

The increase has been largely attributed to a surge in the prices of essential food items and public transport fares.

The report shows that non-core inflation rose sharply to 9.2%, with the steepest increases recorded in fresh produce and transport.

Tomatoes led the price hikes, soaring by 38.3%, while sukuma wiki (collard greens) rose by 17.0%. Bus and matatu fares also went up by 15.4%, straining household budgets further.

On the energy front, electricity costs registered modest increases, with 200 kilowatts rising by 3.7% and 50 kilowatts by 2.0%. Petrol prices, however, remained relatively stable, edging up slightly by 1.6%.

In the core inflation basket, which excludes volatile food and fuel items, the rate stood at 3.0%. Key contributors included fortified maize flour (18.7%), sugar (17.9%), cigarettes (8.7%) and cooking oil (4.2%). On the other hand, the prices of wheat flour and beans recorded only marginal increases of 2.2% and 0.7% respectively.

The Central Bank of Kenya (CBK) noted that food price fluctuations remain the main driver of inflationary pressure, with weather patterns and supply chain challenges significantly impacting the cost of fresh produce.

With households already facing a high cost of living, the rise in inflation highlights growing concerns over food security and transport affordability.

Analysts caution that unless food supplies stabilize and fuel prices remain steady, inflationary pressure could persist in the coming months.

Author: Moureen Koech

Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector