The cost of living in Kenya rose in August, with consumers facing higher prices for food, transport and housing-related goods and services.

Kenya National Bureau of Statistics (KNBS), in its inflation report released on August 31, 2026, said annual inflation stood at 6.6%, meaning consumer prices were 6.6% higher than in August 2025.

“Annual consumer price inflation was 6.6 percent in August 2026, as measured by the Consumer Price Index (CPI). This implies that the general price level was 6.6 percent higher in August 2026 than it was in August 2025,” the report read in part.

Monthly inflation stood at 0.4%, with the Consumer Price Index rising from 155.20 in July 2026 to 155.85 in August 2026. Core inflation increased to 3.4% in August from 3.2% in July, while non-core inflation declined slightly to 14.7% from 15.0%.

Core inflation contributed 3.9 percentage points to Kenya’s overall 6.6% inflation rate in August 2026, with transport-related core services accounting for 1.0 percentage point.

Non-core inflation contributed 2.7 percentage points, with non-core food items accounting for 1.8 percentage points of the overall inflation rate.

Transport, Food and Housing Costs Drive Kenya’s Inflation Higher

According to the Kenya National Bureau of Statistics (KNBS), three major expenditure categories- transport, food and non-alcoholic beverages, and housing, water, electricity, gas and other fuels drove the 6.6% annual inflation recorded in August 2026.

“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (9.0%), Transport (15.7%), and Housing, Water, Electricity, Gas and other fuels (3.6%) over the one-year period.”

Transport costs rose by 15.7% annually, contributing 1.5 percentage points to the overall inflation rate.

Food and non-alcoholic beverages increased by 9.0%, contributing 2.6 percentage points to overall inflation.

Housing, water, electricity, gas and other fuels rose by 3.6%, contributing 0.6 percentage points.

Together, the three divisions account for more than 57% of the total weight across the 13 major expenditure categories.

Maize Flour, Tomatoes and Diesel Prices Drop in August

The latest price data showed declines in the cost of several key household commodities between July and August 2026. The price of 2kg sifted maize flour fell by 2.7%, from KSh157.15 to KSh152.89.

Tomato prices declined by 2.2%, from KSh113.47 to KSh111.03 per kilogram, although they remained 29.3% higher than a year earlier.

The average price of diesel dropped by 2.2%, from KSh224.04 to KSh219.04 per liter, a reduction of about KSh5.

Fortified maize flour prices fell by 2.0%, while one liter of salad cooking oil declined by 0.4%, from KSh358.09 to KSh356.72.

The average price of a 13kg LPG cylinder edged down by 0.2%, from KSh3,432.21 to KSh3,426.89.

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Kenya Inflation Hits 6.6% as Food, Transport and Housing Costs Rise in August
Photo of KNBS boss Macdonald George Obudho. PHOTO/KNBS