Kenyans Face Higher Living Costs as Inflation Climbs to 7.3%, Nearing CBK’s 7.5% Limit

The cost of living in Kenya has come under fresh pressure after annual inflation rose to 7.3% in October 2026, driven by higher prices of food, fuel, transport and household energy.

Data released by the Kenya National Bureau of Statistics (KNBS) on Friday, October 30, shows that inflation increased from 6.8% in September, leaving the rate just 0.2 percentage points below the Central Bank of Kenya’s upper target limit of 7.5%.

The latest figures indicate that households are spending more on essential goods, including milk, cooking oil, potatoes, cabbages, flour and meat, while rising fuel prices are also increasing the cost of public transport.

A 500ml packet of milk increased in price from an average of KSh61.23 in September to KSh64.13 in October. A litre of fresh, unpackaged milk also became more expensive, rising from KSh77.54 to KSh80.58.

Cooking oil prices edged upwards, with a litre increasing from KSh359.36 to KSh361.04 over the same period.

Other commonly purchased food items also recorded increases. A kilogramme of Irish potatoes rose from KSh121.98 to KSh125.06, while a kilogramme of cabbage increased from KSh79.16 to KSh82.38.

Beef prices also climbed, with a kilogramme of beef with bones rising from KSh782.68 to KSh789.29.

The cost of flour and beans increased as well. A two-kilogramme packet of wheat flour rose from KSh181.11 to KSh184.88, while a kilogramme of beans increased from KSh182.76 to KSh185.75.

However, sugar provided some relief to consumers. Its average price declined from KSh165.79 per kilogramme in September to KSh163.84 in October.

Fuel recorded some of the most significant price increases during the month, raising concerns about the additional pressure on household budgets and businesses that depend on transport.

The average price of petrol increased from KSh214.95 per litre to KSh227.85, while diesel rose from KSh219.04 to KSh228.77.

Kerosene recorded an even sharper increase, with its average price climbing from KSh192.56 per litre in September to KSh220.88 in October, representing a rise of approximately 14.7%.

The impact of higher transport costs was evident in Nairobi, where the matatu fare between Westlands and Kangemi increased from KSh40 to KSh50, according to the KNBS report.

The increase means commuters using the route pay an additional KSh10 per trip. For passengers travelling in both directions, the extra cost amounts to KSh20 per day, assuming the same fares apply to the return journey.

Households also faced higher cooking gas prices. The average cost of a 13-kilogramme liquefied petroleum gas cylinder increased from KSh3,419.24 to KSh3,429.61.

Electricity prices, however, declined slightly. The reported cost of consuming 200 units fell from KSh5,533.76 to KSh5,529.66, offering limited relief against the increases recorded in other household expenses.

KNBS attributed the annual inflation increase mainly to three major expenditure categories: food and non-alcoholic beverages, transport, and housing-related costs, including water, electricity, gas and other fuels.

According to the agency, food and non-alcoholic beverages recorded an annual price increase of 10.2% in October, while transport costs rose by 17.1%.

Housing, water, electricity, gas and other fuels recorded an annual increase of 3.7%.

Together, the three categories accounted for more than 57% of the expenditure weight used in calculating the Consumer Price Index, highlighting their significant influence on the overall inflation rate.

The Consumer Price Index measures changes in the prices of goods and services commonly purchased by households. Annual inflation compares the general price level in a particular month with that of the same month a year earlier.

Kenya’s inflation rate has generally trended upwards since the beginning of 2026, according to the figures provided in the report.

It stood at 4.3% in February before rising to 5.6% in April and 6.7% in May. The rate eased to 6.4% in June but subsequently increased to 6.5% in July, 6.6% in August and 6.8% in September.

The October reading of 7.3% represents a further increase in the annual rate and places inflation close to the Central Bank of Kenya’s upper target limit.

The report also showed that core inflation, which generally excludes more volatile items, increased from 4.0% in September to 4.3% in October.

Non-core inflation rose from 14.0% to 15.1% over the same period, reflecting stronger price pressures in categories that are more sensitive to factors such as food and energy costs.

The latest figures suggest that the rising cost of essential commodities and transport remains a significant concern for Kenyan households, particularly those whose incomes have not increased at the same pace as everyday expenses.

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