Kenya’s inflation rate rose to 4.1 percent in July 2025, driven primarily by the escalating costs of fuel and food, according to the latest data released by the Kenya National Bureau of Statistics (KNBS).
The rise comes after the Energy and Petroleum Regulatory Authority (EPRA) announced significant increases in fuel prices on July 14. The price of a litre of kerosene rose by 6.7 percent, diesel by 5.4 percent, and super petrol by 5.2 percent. The knock-on effect of these increases was most evident in the transport index, which recorded a 4.1 percent rise compared to the same period last year.
In its monthly Consumer Price Index (CPI) report, KNBS highlighted that the food and non-alcoholic beverages index surged by 6.8 percent in July, significantly contributing to the overall inflation figure. The increase in food prices particularly affected essential household items. A kilogram of maize flour went up by 1.0 percent, sugar by 1.4 percent, and sukuma wiki by 1.3 percent.
“Prices of different commodities are collected from selected retail outlets located in 50 data collection zones. Out of the 50 data collection zones, 14 are located in Nairobi City County while 36 are located in other urban areas. Nairobi zones cover outlets in lower income, middle income, and upper income areas,” KNBS said in the report.
Additionally, the Housing, Water, Electricity, Gas and Other Fuels Index rose by 1.3 percent over the last 12 months, reflecting modest but sustained increases in utility and housing-related expenses.
While the overall inflation rate remains within the Central Bank of Kenya’s target range of 2.5 to 7.5 percent, the persistent rise in energy and food costs is putting pressure on household budgets, especially among low-income earners. Analysts warn that further fuel price adjustments could stoke additional inflationary pressures in the coming months.
The government is expected to face growing calls for interventions to cushion vulnerable households from the impacts of rising living costs, including potential subsidies or tax reviews to ease the burden at the pump and grocery stores.
