Kenya’s annual inflation rate rose to 6.8 per cent in September 2026, up from 6.6 per cent in August, the Kenya National Bureau of Statistics (KNBS) said on Wednesday, 30 September 2026. It is the third straight monthly increase and the highest reading since January 2024.
KNBS said the general price level was 6.8 per cent higher than in September 2025. The overall Consumer Price Index (CPI) moved from 155.85 in August to 156.47 in September, giving a monthly inflation rate of 0.4 per cent, the same monthly pace as August.
The September figure sits above the 5.0 per cent midpoint of the Central Bank of Kenya (CBK) target band for a sixth consecutive month. It also came in above the Monetary Policy Committee’s 6.5 per cent projection for the month, and just below the 6.9 per cent median of a Bloomberg survey of three economists.
September Inflation at a Glance
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| Measure | September 2026 | August 2026 |
|---|---|---|
| Annual inflation (YoY) | 6.8% | 6.6% |
| Monthly inflation (MoM) | 0.4% | 0.4% |
| Overall CPI | 156.47 | 155.85 |
| Food and non-alcoholic beverages (YoY) | 9.5% | About 9.0% |
| Transport (YoY) | 15.6% | About 15.7% |
| Housing, water, electricity, gas and other fuels (YoY) | 3.2% | About 3.6% |
| Core inflation | 4.0% | 3.4% |
| Non-core inflation | 14.0% | 14.7% |
What Drove the Rise
KNBS said the increase was led by three large CPI divisions that together account for more than 57 per cent of the basket weight: food and non-alcoholic beverages; transport; and housing, water, electricity, gas and other fuels.
Food and non-alcoholic beverages rose 9.5 per cent over the year. Transport recorded the sharpest annual rise among major divisions at 15.6 per cent. Housing, water, electricity, gas and other fuels rose 3.2 per cent year on year.
Food alone contributed about 2.8 percentage points to the 6.8 per cent headline rate. Transport contributed about 1.6 percentage points. Together, the two categories accounted for roughly 4.4 points of the total reading.
Core inflation, which excludes more volatile items, rose to 4.0 per cent from 3.4 per cent in August and contributed about 4.2 percentage points to overall inflation. Non-core inflation eased to 14.0 per cent from 14.7 per cent, contributing about 2.6 percentage points.
Food Prices That Moved in September
Within the month, food and non-alcoholic beverages rose about 0.9 per cent. KNBS-linked reporting highlighted several common household items:
- UHT long-life milk (500 ml): average price up about 8 per cent, from KSh 57.08 to KSh 61.64
- Fresh packeted cow milk: up about 6.0 per cent
- Fresh unpacketed cow milk: up about 5.8 per cent
- Cabbage: up about 6.2 per cent
- White wheat flour (2 kg): up about 4.5 per cent, from KSh 173.35 to KSh 181.11
- Irish potatoes: up about 3.3 per cent
- Oranges: up about 2 per cent
Some items eased on a monthly basis. Tomato prices fell about 4.1 per cent, loose maize flour about 1.9 per cent and sugar about 0.4 per cent.
Transport and Household Energy
Transport remained the fastest-rising major division on an annual basis at 15.6 per cent, even after a slight easing from about 15.7 per cent in August.
Month-to-month transport movements were mixed. Country bus and matatu fares fell about 1 per cent, city bus and matatu fares eased about 0.3 per cent, while international airfares rose about 8.1 per cent, according to reporting based on the KNBS release.
Housing, water, electricity, gas and other fuels inflation moderated to 3.2 per cent year on year from about 3.6 per cent in August, helped in part by lower electricity prices in recent monthly readings, though the division still added to the overall cost of living.
Read also:Kenya Inflation Hits 2014 Highs as Fuel Taxes Squeeze Businesses
What It Means for Households and Policy
For households, the September print means more pressure on essentials that take a large share of monthly budgets: food, transport and household energy. Milk, flour and related staples were among the visible monthly movers.
For policy, the reading keeps inflation above the CBK’s 5 per cent midpoint target for a sixth month. Markets will watch the next Monetary Policy Committee meeting for how the bank balances the higher print against earlier easing in the Central Bank Rate and the broader growth outlook.
This article does not forecast the next rate decision. Rate settings depend on the full set of data the MPC reviews, not a single CPI release.
Bottom Line
Kenya’s annual inflation rose to 6.8 per cent in September 2026 from 6.6 per cent in August, the highest level since January 2024 and the third consecutive monthly increase. Food and transport remained the main drivers, with food contributing about 2.8 percentage points and transport about 1.6 points to the headline rate.
The monthly CPI rise was 0.4 per cent. Core inflation firmed to 4.0 per cent while non-core inflation eased to 14.0 per cent. Attention now turns to how the figures feed into household budgets and the next CBK policy discussion.
Sources:
Kenya National Bureau of Statistics (KNBS);
Kenyans.co.ke – Food, transport among items whose prices have spiked as inflation hits 6.8%;
The Eastleigh Voice – Inflation hits 6.8 per cent in September;
Radio Generation Kenya – Kenya inflation rises to 6.8%;
CNBC Africa / Reuters – Kenya’s inflation at 6.8% year-on-year in September;
Bloomberg – Kenyan inflation accelerates to 32-month high in September;
Central Bank of Kenya.
Figures are from the KNBS September 2026 CPI release as reported on 30 September 2026. Readers should confirm the final official PDF on the KNBS website.