Kenya's year-on-year inflation rate increased to 6.39% in July from 5.80% in June, reaching its highest level since March 2016. This uptick was mainly attributed to higher food prices.
Prices for food and non-alcoholic beverages saw a significant surge of 10.8% in July, up from 8.9% in June. Housing, water, electricity, gas, and other fuels also rose by 0.9%, while transport prices increased by 0.8%. This rise in transport costs was specifically linked to higher petrol and diesel prices, with the transport index going up by 1.13% in July. Several other categories, including clothing and footwear, furnishings and household equipment, and hotels and restaurants, also experienced cost increases, though at slightly altered rates compared to the previous month.
On a monthly basis, consumer prices in Kenya increased by 0.6% in July, following a 1% rise in the preceding month. The Energy and Petroleum Regulatory Authority (EPRA) announced that fuel prices would remain stable from July 15 to August 14, 2026, due to government intervention and the use of the Petroleum Development Levy Fund ($945 million) to cushion consumers from global price shocks. Despite this, some reports indicate that fuel shortages have emerged in other African nations, such as Ethiopia and Zambia, potentially pointing to broader regional challenges in fuel supply.
