Kenya’s annual inflation rate rose to 7.3 percent in October 2026 from 6.8 percent in September, the Kenya National Bureau of Statistics (KNBS) said on 30 October.
It is the highest rate in the 13 months covered by the bureau’s report. The rate was 4.6 percent in October 2025.
The overall Consumer Price Index (CPI) moved from 156.47 in September to 157.60 in October, a monthly rise of 0.7 percent. Prices of goods and services in October were 7.3 percent higher than a year earlier.
Core and non core inflation both rose. Pump prices also increased in the October pricing cycle, reflecting higher international oil prices.
Inflation at a glance
| Measure | September 2026 | October 2026 |
|---|---|---|
| Overall annual inflation | 6.8% | 7.3% |
| Core inflation | 4.0% | 4.3% |
| Non core inflation | 14.0% | 15.1% |
| Overall CPI | 156.47 | 157.60 |
| Monthly inflation | n/a | 0.7% |
Food, transport and housing drive the increase
Three of the 13 spending divisions account for most of the pressure. Together they carry 57.17 percent of the CPI basket.
| Division | CPI weight | Monthly change | Annual change |
|---|---|---|---|
| Food and Non Alcoholic Beverages | 32.91% | 0.9% | 10.2% |
| Transport | 9.65% | 1.7% | 17.1% |
| Housing, Water, Electricity, Gas and Other Fuels | 14.61% | 0.8% | 3.7% |
| Restaurants and Accommodation Services | 8.10% | 0.3% | 3.0% |
| Information and Communication | 7.78% | 0.0% | 0.8% |
Food and non alcoholic beverages added 3.1 percentage points to the 7.3 percent annual rate, the largest contribution of any division. Transport added 1.7 points and housing and fuels added 0.6 points. The other ten divisions each added 0.3 points or less.
Fuel prices rise in the October cycle
Transport costs rose 1.7 percent in the month. Diesel increased 4.4 percent, from KSh 219.04 to KSh 228.77 a litre. Petrol rose 6.0 percent, from KSh 214.95 to KSh 227.85. Over twelve months, diesel is up 32.5 percent and petrol is up 22.8 percent.
Public transport fares also moved. The country bus fare on the Kabarnet to Nakuru route rose from KSh 600 to KSh 650. The city matatu fare from Westlands to Kangemi rose from KSh 40 to KSh 50, and the boda boda fare from Siaya town to Awelo rose from KSh 50 to KSh 70. Taxi fares rose 1.5 percent, while local flight costs fell 2.6 percent.
Kerosene recorded the sharpest monthly rise among the tracked items. Its price went from KSh 192.56 to KSh 220.88 a litre, up 14.7 percent. It is 41.6 percent higher than in October 2025. A 13 kg cylinder of cooking gas rose 0.3 percent to KSh 3,429.61.
Electricity prices eased. The cost of 200 kWh fell 0.1 percent to KSh 5,529.66. On the generation side, Khusoko reported that KenGen spent Ksh15.5bn on plants and cut its dividend.
Fresh produce lifts non core inflation
Non core inflation covers items with volatile prices, such as fresh farm produce and fuel. It rose to 15.1 percent from 14.0 percent, mainly on higher prices of fresh produce. Producers and traders can follow price moves in Khusoko’s agricultureand markets sections.
| Commodity | Unit | September 2026 (KSh) | October 2026 (KSh) | Monthly change | Annual change |
|---|---|---|---|---|---|
| Fresh packeted cow milk | 500 ml | 61.23 | 64.13 | 4.7% | 14.4% |
| Cabbages | 1 kg | 79.16 | 82.38 | 4.1% | 29.1% |
| Irish potatoes | 1 kg | 121.98 | 125.06 | 2.5% | 34.9% |
| Wheat flour | 2 kg | 181.11 | 184.88 | 2.1% | 9.1% |
| Beef with bones | 1 kg | 782.68 | 789.29 | 0.8% | 12.5% |
| Cooking oil (salad) | 1 litre | 359.36 | 361.04 | 0.5% | 5.1% |
| Oranges | 1 kg | 127.22 | 125.81 | -1.1% | 8.9% |
| Sugar | 1 kg | 165.79 | 163.84 | -1.2% | -11.1% |
Sugar is the only tracked food item cheaper than a year ago. Its price is down 11.1 percent from KSh 184.35 in October 2025. Maize flour (loose) fell 1.1 percent in the month, according to the report.
Core inflation rises on processed food and transport
Core inflation excludes volatile items. It rose to 4.3 percent from 4.0 percent, driven by higher prices of select processed food items and transport costs. It has increased in each month since February 2026, when it stood at 2.1 percent.
Core inflation contributed 4.5 percentage points to the overall rate in October, and non core inflation contributed 2.8 points. Core inflation is lower than the headline rate as a rate, but it contributes more to the headline because core items carry a larger weight in the basket.
Other divisions
Most other divisions recorded small monthly increases:
- Alcoholic beverages, tobacco and narcotics rose 0.1 percent. Miraa prices rose 1.7 percent and cigarettes rose 0.3 percent.
- Recreation, sport and culture rose 0.3 percent. Pre-primary and primary school textbooks rose 1.1 percent.
- Restaurants and accommodation services rose 0.3 percent. Hotel and restaurant beverages rose 0.7 percent.
- Personal care and miscellaneous goods rose 0.3 percent. Toilet paper rose 1.3 percent.
- Clothing, education, information and communication, and insurance and financial services recorded no monthly change.
What the data means for households and businesses
The KNBS defines the CPI as a measure of “the weighted aggregate change over time in retail prices paid by consumers” for a fixed basket of goods and services. It collects prices in urban areas across 50 data collection zones during the second and third weeks of each month.
Fuel and food make up the main cost pressures for households, and transport costs feed into the price of other goods. Households managing budgets can find guidance in Khusoko’s personal finance section.
Savers weighing returns against 7.3 percent inflation can read Khusoko’s report that Kenya’s collective investment schemes assets rose to Sh948.7bn, and follow rate and lender news under banking and finance.
Exporters can see how Kenya is reaching buyers in Kenya’s EU export catalogue. Subscription costs are also changing, as covered in DStv Kenya’s four new tiers.
