Kenya’s annual inflation rate rose sharply for a second consecutive month in May, reaching its highest level in more than two years as higher fuel costs linked to the conflict involving Iran pushed up transport and food prices.
Data released by the Kenya National Bureau of Statistics showed inflation accelerated to 6.7 percent year-on-year in May from 5.6 percent in April. The figure marks the highest inflation rate recorded since January 2024 and brings consumer price growth close to the upper end of the government’s target range of 2.5 percent to 7.5 percent.
The statistics agency attributed the increase mainly to rising costs in transport, food and non-alcoholic beverages, as well as housing and energy-related expenses. Transport prices surged 16.5 percent from a year earlier, while food and non-alcoholic beverage prices increased 9.4 percent. Housing, water, electricity, gas and other fuels rose 3.4 percent.
Together, these categories account for about 57 percent of Kenya’s consumer price basket, making them key drivers of overall inflation.
The rise follows fuel price increases implemented in April and May after global energy markets reacted to escalating tensions and conflict involving Iran. The higher fuel costs have filtered through the economy, raising transportation expenses and contributing to broader price pressures.
The fuel hikes have also triggered public discontent, with transport operators staging strikes in protest against the increased costs.
The inflation data comes as policymakers assess the outlook for the economy and monetary policy. The Central Bank of Kenya is scheduled to announce its next interest rate decision on June 9, after keeping its benchmark lending rate unchanged at its April meeting.
Analysts will be watching closely to see whether the latest surge in inflation prompts the central bank to adopt a tighter policy stance or maintain its current approach amid concerns over rising living costs and economic growth.
Kenya’s inflation trend reflects the broader vulnerability of African economies to global energy price shocks, particularly as higher fuel costs continue to feed into transportation, food distribution and household expenses across the region.
