The Kenya National Bureau of Statistics reported that headline inflation reached 7.3% in October 2026, the highest level since mid‑2023 and just below the Central Bank of Kenya’s 7.5% upper target.

Transport costs posted the steepest year‑on‑year increase at 17.1%, with city bus fares rising 25% on some routes and boda‑boda fares climbing up to 40% on others.

Fuel prices also surged: petrol rose 6.0% to KSh 227.85 per litre, diesel increased 4.4% to KSh 228.77, and kerosene jumped 14.7% to KSh 220.88, marking the largest single‑month rise among tracked commodities.

Food and non‑alcoholic beverages contributed a 10.2% year‑on‑year rise, with items such as fresh packaged cow milk, cabbage and Irish potatoes all posting price increases.

Core inflation, which excludes volatile food and fuel items, climbed to 4.3% in October, while non‑core inflation rose to 15.1%, together accounting for the bulk of the headline increase.

The Consumer Price Index moved from 156.47 in September to 157.60 in October, indicating a monthly inflation rate of 0.7%.

Analysts note that the December 2026 Monetary Policy Committee meeting will likely assess whether to adjust interest rates, balancing inflation pressures against the need to sustain credit growth and economic recovery.