Kenya’s inflation rate dropped slightly in January 2026, offering a modest easing in the cost of living, even as food, transport, and housing costs continued to shape price trends across the economy.
Data from the Kenya National Bureau of Statistics shows annual consumer price inflation stood at 4.4 percent in January 2026, down from 4.5 percent in December 2025. The bureau said the slight slowdown was partly due to base effects, linked to higher prices recorded during the same period last year.
“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (7.3%), Transport (4.8%), and Housing, Water, Electricity, Gas and other fuels (2.2%) over the one-year period,” KNBS reported, adding that these three divisions together account for over 57 percent of the total CPI basket.
On a month-to-month basis, the overall Consumer Price Index rose from 148.02 in December 2025 to 148.96 in January 2026, representing a 0.6 percent increase.
Food prices showed mixed movements during the month. Sugar, mangoes, and cooking oil recorded price drops of 3.0 percent, 3.2 percent, and 0.1 percent, respectively. At the same time, cabbages, fortified maize flour, kale, and Irish potatoes became more expensive, with prices rising by 9.3 percent, 6.7 percent, 4.0 percent, and 3.4 percent.
Transport costs also recorded mixed changes. Country bus and matatu fares fell by 1.9 percent, while petrol and diesel prices declined by 1.1 percent and 0.6 percent. Electricity charges, however, increased, with 50 kWh and 200 kWh units rising by 3.7 percent and 3.4 percent, while kerosene prices dropped slightly by 0.6 percent.
In education and health, tuition fees for pre-primary, primary, and secondary schools increased by 3.3 percent, 2.7 percent, and 3.1 percent. Medicine for diabetes and laboratory tests rose by 0.9 percent, although prices for cancer drugs and spectacles declined.
Communication costs recorded marginal changes, with prices for mobile phones, televisions, and internet services slightly lower, leading to a yearly inflation rate of 0.5 percent in the sector.
Household items and services also posted modest price increases over the year. Domestic services, hairdressing, and toilet paper rose by between 0.4 percent and 1.5 percent, while insurance services also saw small increases.
KNBS said inflation pressures remain driven mainly by essential household expenses such as food, transport, and utilities, which make up the largest share of household spending. “These sectors are central to the cost of living, and their price movements have a significant impact on the average consumer,” the report noted.
The bureau added that ongoing pressures from food prices, energy costs, and supply chain factors continue to influence inflation trends in the country.
