Annual consumer price inflation was 6.6 per cent in August 2026, as measured by the Consumer Price Index (CPI). This implies that the general price level was 6.6 per cent higher in August 2026 than it was in August 2025.
The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (9.0%), Transport (15.7%), and Housing, Water, Electricity, Gas and other fuels (3.6%) over the one year. These three divisions together account for over 57 per cent of the total weight across the 13 major expenditure categories.
The overall index increased from 155.20 in July 2026 to 155.85 in August 2026, resulting in a monthly inflation rate of 0.4 per cent. The year-on-year inflation stood at 6.6 per cent in August 2026.
Key Drivers of Inflation for each of the 13 Divisions
Between July and August 2026, sifted maize flour prices recorded the largest decline, dropping by 2.7 per cent, followed closely by tomatoes, which fell by 2.2 per cent, and fortified maize flour, which eased by 2.0 per cent. On the other hand, several commodities saw price increases. Kale (Sukuma Wiki) recorded the sharpest rise at 4.3 per cent, followed by Irish potatoes at 4.1 per cent. Beef with bones also increased, though more modestly, by 1.2 per cent.
Between July and August 2026, diesel prices declined by 2.2 per cent. In contrast, transport-related services became more expensive over the same period. Local flight fares rose by 4.1 per cent while country bus and matatu fares for inter-town travel increased by 2.1 per cent.
Between July and August 2026, prices of gas/LPG recorded a slight decline of 0.2 per cent. Meanwhile, prices of electricity (200kWh) and charcoal both saw small increases, rising by 0.2 per cent and 0.4 per cent, respectively.
Between July and August 2026, the price of wine rose slightly by 0.2 per cent. Miraa (khat), on the other hand, saw a more pronounced increase of 1.1 per cent.
Prices of women’s suits, detergents and painkillers in August 2026
Women’s suits saw a slight decline of 0.2 per cent, while Kanga/Kikoi recorded a larger drop of 0.6 per cent. In contrast, men’s trousers experienced a small price increase of 0.2 per cent over the same period.
Between July and August 2026, shoe polish/cream recorded a price decrease of 0.3 per cent. In contrast, laundry soap/bar soap and detergents both saw price increases, rising by 0.3 per cent and 0.8 per cent, respectively.
The price of fever and pain relief medications, such as paracetamol, rose by 0.1 per cent. Medicines for cholesterol and blood pressure management increased by 0.2 per cent, while diabetes medications recorded the largest rise at 0.7 per cent. Between July and August 2026, internet costs recorded a marginal increase of 0.1 per cent, while mobile phone airtime rose by 0.4 per cent.
Meanwhile, secondary school textbooks recorded a slight price increase of 0.3 per cent, while entry fees for museums, game parks, and historical sites rose sharply by 5.5 per cent. The education index remained constant during the period.
Between July and August 2026, lodging and guest expenses rose by 0.2 per cent, while hotel boarding costs saw a smaller increase of 0.1 per cent. Food from vendors rose by 0.8 per cent.
Between July and August 2026, mobile money transfer charges recorded a notable increase of 1.5 per cent. Toothpaste/mouthwash rose by 0.3 per cent, while body lotion saw a slightly larger increase of 0.6 per cent. Toilet paper/tissue paper increased by 1.3 per cent.
