Kenya's cost of living climbed sharply in October, with annual inflation rising to 7.3 per cent from 6.8 per cent in September, the highest reading since July 2023, as the steep fuel price increase announced in mid-October rippled through transport fares and food prices.

Data released by the Kenya National Bureau of Statistics (KNBS) on Friday shows inflation is now just below the 7.5 per cent upper limit of the government's 5 to 7.5 per cent target range. It was as low as 4.3 per cent in February.

Transport leads the surge

Transport costs rose 17.1 per cent over the year, the fastest of the 13 categories in the consumer price basket, and 1.7 per cent in October alone. The jump followed the Energy and Petroleum Regulatory Authority's mid-October review, when pump prices rose by Sh12.93 a litre for petrol, Sh9.90 for diesel and Sh28.49 for kerosene. Nation reports that the State dropped the fuel subsidy for the first time since August 2025, and halving VAT on fuel to 8 per cent was not enough to cancel out the increases.

Compared with October 2025, according to Citizen Digital:

  • Diesel was 32.5 per cent dearer and petrol 22.8 per cent.
  • City bus and matatu fares rose 18.2 per cent.
  • Irish potatoes rose 34.9 per cent and cabbages 29.1 per cent.
  • Fresh packeted milk rose 14.4 per cent, beef 12.5 per cent and wheat flour 9.1 per cent.

Sugar was the main relief, falling 11.1 per cent over the year.

KNBS also tracked sharp local fare increases between September and October, including a 40 per cent rise in boda boda fares from Siaya town to Awelo and 25 per cent on matatus from Westlands to Kangemi in Nairobi.

Food and fuel drive the numbers

Food and non-alcoholic beverages, which make up nearly a third of the basket, rose 10.2 per cent and contributed 3.1 percentage points of the headline rate. Non-core inflation, which covers food and energy, rose to 15.1 per cent from 14.0 per cent, while core inflation, which strips out volatile items, edged up to 4.3 per cent from 4.0 per cent.

The fuel shock is rooted in global oil markets, where prices have climbed since the US-Israel attack on Iran in February disrupted shipping through the Strait of Hormuz. Businesses are expected to pass on higher freight and operating costs to shoppers in the coming months.

Pressure on CBK and households

The figures put the Central Bank of Kenya in a tighter spot ahead of its next rate decision, as it weighs the cost of living and the exchange rate. The Standard notes that rising prices could also shape the political mood heading into the 2027 General Election.

The next fuel price review is due on 14 November, and with diesel already at record highs, families and businesses will be watching closely.

Photos: Citizen Digital; Eastleigh Voice. Thumbnail design: HAMASTA MEDIA.