Kenya’s annual inflation rate increased to 6.6 per cent in August 2026, up slightly from 6.5 per cent in July, reflecting continued pressure on household expenses.
The latest figures show that transport and food prices remained among the major contributors to inflation during the month.
Transport costs rose by 15.7 per cent year-on-year, while food and non-alcoholic beverages increased by 9.0 per cent. Housing, water, electricity, gas and other fuels also recorded a higher annual increase of 3.6 per cent.
The increase means inflation has remained above the midpoint of the Central Bank of Kenya’s target range, putting continued pressure on consumers and businesses.
For households, the elevated food inflation rate remains particularly significant because food accounts for a large share of monthly expenditure. Rising transport costs also feed into the prices of goods and services by increasing the cost of moving products from farms, factories and import points to consumers.
Businesses are similarly affected, particularly those operating in sectors that depend heavily on transport, energy and imported inputs.
The August inflation figures also highlight the difficulty of maintaining stable prices amid external pressures on energy and commodity markets.
While the increase from July was relatively modest, the continued elevated inflation rate could influence consumer spending and business costs in the months ahead.
For policymakers, keeping inflation within the target range remains important for preserving household purchasing power and maintaining a predictable environment for investment.
