Kenya’s inflation rate rose to 4.1 percent in July 2025, largely due to the rising costs of fuel and food.
According to new data released by the Kenya National Bureau of Statistics (KNBS), the increase was triggered by sharp fuel price adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA) on July 14. Kerosene prices rose by 6.7 percent, diesel by 5.4 percent, and super petrol by 5.2 percent. These changes had a ripple effect, especially on transportation, which recorded a 4.1 percent increase compared to July last year.
In its monthly Consumer Price Index (CPI) report, KNBS also highlighted a 6.8 percent rise in the cost of food and non-alcoholic drinks. This jump significantly contributed to the inflation rate, with the prices of daily household items showing noticeable increases. The price of a kilogram of maize flour rose by 1.0 percent, sugar by 1.4 percent, and sukuma wiki by 1.3 percent.
KNBS noted that the pricing data was gathered from retail outlets in 50 zones across the country. Out of these, 14 zones are in Nairobi, covering low-, middle-, and high-income areas, while the remaining 36 zones represent other urban centers.
The cost of utilities and housing also edged upward. The Housing, Water, Electricity, Gas and Other Fuels Index increased by 1.3 percent over the last 12 months, indicating a steady rise in basic living expenses.
Although the overall inflation rate remains within the Central Bank of Kenya’s target range of 2.5 to 7.5 percent, the continued rise in essential commodity prices is squeezing household budgets, especially among lower-income groups.
Economic analysts are warning that if fuel prices continue to climb, more inflationary pressure could build up in the coming months. This would likely lead to even higher prices across various sectors.
There is growing public pressure on the government to act. Proposed solutions include introducing fuel subsidies, reviewing taxation on basic commodities, or offering targeted support to cushion vulnerable households from further economic strain.
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