Annual consumer price inflation, as measured by the Consumer Price Index (CPI), was 3.8 per cent in June 2025. This implies that the general price level was 3.8 per cent higher in June 2025 than it was in June 2024.
The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (6.6%); Transport (3.2%), and Housing, Water, Electricity, Gas and other fuels (0.2%) over the one year. These three divisions account for over 57 per cent of the total weight across the 13 major expenditure categories.
What is the Consumer Price Index?
Consumer Price Index (CPI) is defined as a measure of the weighted aggregate change over time in retail prices paid by consumers for a given basket of goods and services. The CPI measures the cost of purchasing this fixed basket of goods and services, comparing current prices to those of a base period, which for the current CPI is February 2019.
On the other hand, the inflation rate is defined as a percentage change in the CPI between two periods. There are different inflation rates that can be computed, such as annual (year-on-year), quarterly (quarter-to-quarter) and monthly (month-on-month) inflation rates.
Data used to derive the inflation rates is collected through a monthly survey of retail prices from a statistically representative sample of outlets in urban areas across 50 data collection zones nationwide.
The survey is conducted during the second and third weeks of the month.
Data from the Kenya National Bureau of Statistics shows that he overall index increased from 144.88 in May 2025 to 145.58 in June 2025, resulting in a monthly inflation of 0.5 per cent.
Drivers of Kenya’s inflation in June 2025
The Food and Non-Alcoholic Beverages rose significantly by 1.0 per cent mainly due to increase in prices of carrots (11.1%), cabbages (10.8%), sugar (5.5%), maize grain loose (2.8%), spinach (2.3%), maize flour sifted (2.1%), tomatoes (1.2 %), Kale- Sukuma wiki (1.0%) and beef with bones (0.7%).
Conversely, prices of cooking salad (0.4%), fresh unpacked cow milk (0.4%) and potatoes (Irish)(0.2%) dropped in June 2025.
In June 2025, prices in the transport sector showed mixed movements. Petrol recorded the highest increase at 1.6%, followed by a 1.2% rise in the cost of personal vehicles and a 1.0% increase in country bus fares. City bus and regular matatu fares both had slight upticks of 0.2%.
In contrast, the price of diesel dropped by 1.1%, easing some pressure on fuel-related transport costs.
In June 2025, prices of items in the Housing, Water, Electricity, Gas, and Other Fuels category showed varied movement.
Electricity costs dropped significantly, by 1.6% for a 50 kWh unit and 1.5% for the 200 kWh unit. Kerosene and LPG prices also declined by 1.2% and 0.2%, respectively. On the other hand, prices of solid fuels rose, with firewood increasing by 2.0% and charcoal by 1.0%. Construction materials presented mixed trends, with tiles rising by 0.7% while cement declined by 0.2%. Monthly house rent for a single room rose marginally by 0.2%.
Prices of items in the Alcoholic Beverages, Tobacco, and Narcotics category also recorded slight increases. Spirits rose by 0.5%, followed by wines with a 0.4% increase, while miraa (khat) saw a modest uptick of 0.2%. Beer prices remained unchanged during the period.
Meanwhile, the Clothing and Footwear category experienced price increases across various items. Infant’s clothing recorded the highest rise at 0.5%, followed by women’s trousers, dresses, and girls’ school uniforms, each increasing by 0.3%. Men’s trousers registered a slight increase of 0.1% during the month.
The Furnishings, Household Equipment and Routine Household Maintenance division recorded a monthly inflation of 0.1%.
In June 2025, the Furnishings, Household Equipment, and Routine Household Maintenance division recorded price increases. Buckets and basins registered the highest month-on-month price rise at 0.9%, followed by refrigerators/freezers at 0.8%.
Shoe polish/cream increased by 0.6%, while laundry soap/bar soap and electric bulbs/fluorescent tubes recorded price increases of 0.5% and 0.4%, respectively.
Cost of medical goods and services in Kenya in June 2025
The Health division recorded notable price increases across various medical goods and services. Dewormers registered the highest monthly price increase at 2.1%, followed by eye care medicine at 0.7% and medicine for cancer at 0.6%.
Delivery charges rose by 0.5%, while both antibiotics and general practitioners’ services recorded price increases of 0.4%.
In the education sector, prices of school textbooks for pre-primary and primary levels increased by 0.9%. In contrast, tour/honeymoon packages and exercise books both recorded slight declines of 0.1% while there was a slight increase of 0.1% in certificate course fees.
Insurance and Financial Services remained unchanged between May 2025 and June 2025.
