Cost of Living Crisis Deepens as Kenya’s Inflation Hits 7.3%, Fuel and Food Prices Soar

Kenyan households are facing renewed financial pressure after the country’s annual inflation rate climbed to 7.3% in October 2026, bringing the cost of living closer to the upper limit set by the Central Bank of Kenya.

According to the latest data released by the Kenya National Bureau of Statistics on Friday, October 30, inflation increased from 6.8% in September to 7.3% in October, marking the highest level recorded since July 2023.

The latest figures indicate that the prices of essential goods and services have continued to rise, putting additional pressure on families already struggling to manage their monthly budgets.

The inflation rate is now just 0.2 percentage points below the CBK’s upper target limit of 7.5%, raising concerns about the direction of consumer prices in the coming months.

Transport emerged as the category with the highest annual price increase, recording inflation of 17.1% over the 12 months to October 2026.

The increase has been largely associated with rising fuel prices, which have pushed up the cost of moving people and goods across the country.

KNBS data shows that the average price of petrol rose from KSh214.95 per litre in September to KSh227.85 in October. Diesel increased from KSh219.04 to KSh228.77 per litre.

Kerosene recorded an even sharper monthly increase of 14.7%, rising from KSh192.56 to KSh220.88 per litre.

The rising costs have also affected public transport users.

For instance, bus fares between Westlands and Kangemi in Nairobi increased from KSh40 to KSh50, representing a 25% rise.

Higher transport expenses could also translate into increased prices for goods delivered to markets and shops.

Food and non-alcoholic beverages recorded an annual price increase of 10.2%, making them another major contributor to the rising cost of living.

The average price of a 500-millilitre packet of fresh milk increased from KSh61.23 to KSh64.13, while a kilogramme of cabbages rose from KSh79.16 to KSh82.38.

Irish potatoes increased from KSh121.98 to KSh125.06 per kilogramme, while a two-kilogramme packet of wheat flour rose from KSh181.11 to KSh184.88.

However, some commodities offered limited relief, with sugar prices declining from KSh165.79 to KSh163.84 per kilogramme.

Housing, water, electricity, gas and other fuels recorded an annual increase of 3.7%, further contributing to household expenditure pressures.

The statistics agency also reported that core inflation, which excludes volatile food and fuel prices, rose from 4.0% in September to 4.3% in October.

The latest figures present a challenge for the Central Bank of Kenya as policymakers assess how to contain inflation without undermining economic growth and access to credit.

The CBK’s Monetary Policy Committee is expected to review economic conditions at its December 2026 meeting.

For ordinary Kenyans, the immediate concern remains the rising cost of transport, food and household essentials, with further price movements likely to shape spending decisions in the coming weeks.

https://www.tuko.co.ke/business-economy/economy/645084-key-consumer-prices-kenya-rise-sharply-october-inflation-nears-cbk-upper-limit/?fbclid=IwZXh0bgNhZW0CMTEAcGRvZgFzcnRjBmFwcF9pZAwzNTA2ODU1MzE3MjgAAR8m8A5mdCiVyUfcyHrjtUIt7EMO02WfhGj9UodZQWKWJ_oM-skGRLND0-I1aA_aem_F7SV9fMbsc0IOcp6uZ5d-g

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