By the 254.ke Newsroom.
Kenya’s annual inflation rate rose to 6.6 percent in August 2026, up from 6.5 percent in July, according to the Kenya National Bureau of Statistics (KNBS). It is the second straight monthly increase, and transport, food and housing costs did most of the damage. Consumer prices rose 0.4 percent in the month itself, against 0.2 percent in July.
The figure is still inside the Central Bank of Kenya’s target band of 2.5 to 7.5 percent. But it has stayed elevated for five consecutive months, and it lands less than a year before the August 2027 General Election, when the cost of living is expected to be a central issue.
What is inflation in Kenya right now?
KNBS released the August figures on August 31, 2026. The Consumer Price Index moved to 155.85 from 155.20 in July. Core inflation, which strips out volatile items such as food and energy, rose to 3.4 percent from 3.2 percent. Non-core inflation eased slightly to 14.7 percent from 15.0 percent.
| Measure | August 2026 | Earlier reading |
|---|---|---|
| Overall inflation (year on year) | 6.6% | 6.5% in July |
| Month-on-month change | 0.4% | 0.2% in July |
| Core inflation | 3.4% | 3.2% in July |
| Non-core inflation | 14.7% | 15.0% in July |
Which prices are pushing inflation up?
Three expenditure groups drove the result. Transport prices were 15.7 percent higher than a year earlier and added about 1.5 percentage points to the headline rate. Food and non-alcoholic beverages were up 9.0 percent and contributed about 2.6 points. Housing, water, electricity and fuels rose 3.6 percent and added roughly 0.6 points.
Food carries the most weight in the household basket, at about a third of it, while transport accounts for around a tenth. That is why a jump in fares and pump prices shows up so quickly in what families feel.
Transport stayed expensive even though diesel fell 2.2 percent between July and August. Reports on the KNBS data noted that local flight fares rose 4.1 percent and intercity bus and matatu fares rose 2.1 percent in the month.
What got cheaper?
There was some relief on the shelf. Between July and August, sifted maize flour fell 2.7 percent, fortified maize flour fell 2.0 percent and tomatoes fell 2.2 percent. Tomatoes are still about 29.3 percent dearer than a year ago, however, and potatoes, kales and other leafy vegetables continued to push food prices up.
- Cheaper month on month: sifted maize flour, fortified maize flour, tomatoes, diesel.
- Dearer: Irish potatoes, kales, intercity bus and matatu fares, local flights.
For background on the maize side of the story, see our earlier report on why unga prices could rise again, and on the weather risk to harvests, our guide to when the short rains are expected to start.
Why does it matter for interest rates?
The Central Bank of Kenya has held its benchmark rate at 8.75 percent for three consecutive meetings. Rising core inflation suggests price increases are spreading beyond energy and other volatile items, which analysts say limits how quickly the bank can cut. The Standard reported that the cost-of-living squeeze is deepening pressure on households ahead of the 2027 polls.
What to watch next
KNBS normally publishes each month’s Consumer Price Index at the end of that month, so the September reading is expected shortly. Fuel prices, the performance of the short rains and food supply from the North Rift and Western Kenya are the main variables. Full CPI tables are available on the KNBS website.
FAQ: Kenya inflation August 2026
What was Kenya’s inflation rate in August 2026?
6.6 percent year on year, up from 6.5 percent in July, per KNBS.
Is 6.6 percent inflation within the CBK target?
Yes. The target band is 2.5 to 7.5 percent, and 6.6 percent sits above the midpoint of 5 percent.
Did unga prices fall in August?
Month on month, yes: sifted maize flour fell 2.7 percent and fortified maize flour 2.0 percent between July and August.
What is the biggest driver of inflation?
Transport, which was up 15.7 percent year on year, alongside food, which was up 9.0 percent.
Sources: KNBS figures as reported by The Kenya Times, The Standard and Techeconomy.
