Kenyan households face renewed pressure on their budgets as the cost of living rose for the third consecutive month in September, driven mainly by food and transport costs.
Businesses are also contending with weaker consumer spending and pressure on margins as the economy continues to take a hit from geopolitical tension mainly the Middle East war.
The war has led to high fuel prices and disruption of the global supply chain.
Annual inflation climbed to 6.8 per cent in September, up from 6.6 per cent in August and 6.5 per cent in July, according to the latest Consumer Price Index report by the Kenya National Bureau of Statistics (KNBS). The rate had stood at 6.4 per cent in June.
Between August 2026 and September 2026, price movements for different commodities were mixed as food prices rose 0.9 per cent.
White wheat flour increased 4.5 per cent to Sh181 for a two-kilo pack, fresh non-packet milk went up to Sh77.54 per litre, from Sh73 while the average price of a 500ml packet of fresh milk rose from Sh57.74 in August, to Sh61.23 in September, amid a major shortage.
A kilo of beef with bones increased to Sh782.68 from Sh777 while that of Sukuma wiki went up to Sh122.5 from Sh121.
The price of a litre of cooking oil (salad) rose from Sh356.72 to Sh 359.36.
Other food prices also remained elevated compared with a year earlier.
Potatoes were up 33.6 per cent, sukuma wiki 32.5 per cent, cabbage 25.8 per cent and tomatoes 21.1 per cent.
The price of a 1 Kg unit of tomatoes however fell from Sh111.03 to Sh106.44, while the price of 2 Kg of sifted maize flour eased from Sh152.89 to Sh152.00.
The most notable increase was in the price of fresh packeted cow milk, which rose from KSh 57.74 to KSh 61.23 for a 500-millilitre packet.
The statistics agency said the general price level was 6.8 per cent higher in September 2026 than in the same month last year, with food, transport and housing-related costs accounting for the bulk of the increase.
KNBS director general Macdonald Obudho yesterday said the increase was primarily driven by higher prices in three major consumption categories.
“The price increase was primarily driven by a rise in prices of items in the food and non-alcoholic beverages (9.5 per cent), transport (15.6 per cent), and housing, water, electricity, gas and other fuels (3.2 per cent) over the one-year period,” Obudho said in the report.
Matatu fares within Nairobi remained high with PSV operators declining to pass gains from the recent reduction in diesl prices to commuters.
Fuel prices remained unchanged during the month, with petrol averaging Sh214.95 a litre and diesel Sh219.04.
Compared with September last year, petrol was 15.8 per cent more expensive while diesel was up 26.9 per cent.
Electricity provided some relief, with the average price of 50-kWh consumption falling 2.4 per cent month-on-month and 200-kWh consumption declining 2.2 per cent. LPG prices also edged down 0.2 per cent.
The latest figures point to continued pressure on household purchasing power, particularly as families allocate a large share of their incomes to necessities such as food, commuting and energy.
The squeeze is also being felt by businesses as households have less room for discretionary spending, potentially weighing on sales volumes at a time when firms are also dealing with higher operating costs.
The latest inflation reading comes against the backdrop of continued global energy market disruptions linked to the Middle East conflict, which has raised concerns over fuel supply, shipping and transport costs.
Global oil prices remained above $100 a barrel during parts of September amid supply concerns.
Kenya, which relies on imported petroleum products, remains exposed to such international price and freight movements.
Recent disruptions to Gulf shipping routes have also raised concerns over the cost of transporting petroleum and other imported goods.
