June inflation climbs to 6.4% as food and fuel costs push up living expenses

Kenya’s cost of living rose further in June after higher prices of basic food items and increased transport expenses pushed annual inflation to 6.4 per cent, placing fresh pressure on household budgets across the country.

New data released by the Kenya National Bureau of Statistics (KNBS) shows that annual inflation increased from 3.8 per cent recorded in June last year, largely driven by rising costs in food, transport and housing-related expenses.

Food and non-alcoholic beverages recorded an annual inflation rate of 8.6 per cent, while transport costs increased by 16.1 per cent. Housing, water, electricity, gas and other fuels registered a 3.4 per cent rise over the same period.

The food and transport categories account for more than 42 per cent of the Consumer Price Index (CPI) basket, making them the main drivers of the increase in the cost of living.

“Annual consumer price inflation was 6.4 per cent in June 2026, as measured by the Consumer Price Index (CPI),” KNBS said.

“The price increase was primarily driven by a rise in prices of items in the food and non-alcoholic beverages (8.6 per cent), transport (16.1 per cent), and housing, water, electricity, gas and other fuels (3.4 per cent) over the one-year period.”

Among food products, tomatoes recorded the highest increase. The average retail price rose by 40.5 per cent to Sh117.87 per kilogramme from Sh83.88 over the period under review.

Cabbage prices also climbed by 25.3 per cent, while sukuma wiki became 26.6 per cent more expensive.

Several other commonly consumed food items also recorded higher prices. Irish potatoes increased by 23.2 per cent, spinach by 19.4 per cent, beef by 10.2 per cent and green grams by eight per cent.

The continued rise in vegetable prices has increased pressure on household spending, especially among low-income families, since food remains the largest expense for many households.

The higher prices come after months of unstable weather conditions that affected production in major horticultural regions supplying Nairobi and other towns. Heavy rains experienced during parts of the long-rains season disrupted harvesting and transportation, while excessive moisture damaged crops and reduced supplies reaching markets.

With demand remaining steady, the lower supply pushed prices higher in supermarkets and open-air markets across the country.

Transport costs also continued to increase, driven by higher fuel prices and growing operational expenses.

KNBS data shows that diesel prices rose by 29.9 per cent compared to June last year, marking the biggest increase among petroleum products. Kerosene prices increased by 22.2 per cent, while petrol prices went up by 14.9 per cent.

The increase in fuel costs has raised the expense of transporting goods and passengers, adding pressure to food distribution costs and public transport fares.

According to KNBS, matatu fares on the Bungoma-Kabula route increased by 42.9 per cent over the past year, highlighting the impact of rising operating costs on commuters.

While annual inflation accelerated, monthly inflation eased during June, indicating that prices increased at a slower pace compared with May.

Even so, the annual data shows that households continue to face high living costs, mainly due to food and transport expenses, which remain the most heavily weighted categories in the inflation basket.

Agricultural economists have previously observed that vegetable prices are highly sensitive to weather disruptions because most vegetables have short growing cycles and cannot be stored for long periods.

As a result, interruptions in supply are quickly reflected in wholesale and retail prices, with consumers often feeling the effects within a short time.