Kenya’s annual inflation rate rose to 4.5 percent in December 2025, driven by higher prices for food, transport and housing-related costs, official data showed on Wednesday.
According to the Kenya National Bureau of Statistics (KNBS), consumer prices in December were 4.5 percent higher than a year earlier, up from November levels, as the cost of basic commodities continued to climb.
KNBS said the increase was largely driven by price rises in food and non-alcoholic beverages, which recorded an annual inflation rate of 7.8 percent, alongside transport costs, which rose 5.2 percent, and housing, water, electricity, gas and other fuels, up 1.6 percent year-on-year.
“These three divisions together account for over 57 percent of the total weight across the 13 major expenditure categories,” the statistics office said in its Kenya Consumer Price Index and Inflation Report released on December 31.
On a month-on-month basis, inflation also accelerated. The overall consumer price index (CPI) rose from 147.08 in November to 148.02 in December, translating into a monthly inflation rate of 0.6 percent, KNBS said.
The CPI measures changes over time in the cost of a fixed basket of goods and services commonly purchased by households. Kenya’s current CPI base period is February 2019.
KNBS said inflation data is compiled from a nationwide monthly survey of retail prices collected during the second and third weeks of each month from a statistically representative sample of outlets across 50 urban data collection zones.
Food prices remain the main driver of inflation in Kenya, reflecting persistent pressure from supply constraints, weather variability and transport costs, analysts say.
Despite the December increase, inflation remained within the government’s target range, after easing earlier in the year amid lower fuel prices and a relatively stable shilling.
Kenyan authorities have repeatedly said cost-of-living pressures have moderated compared with 2024, although households continue to face higher prices for essential goods, particularly food items.
KNBS publishes inflation data monthly and uses the figures to inform fiscal planning, monetary policy decisions and cost-of-living assessments across the economy.
