Kenya’s overall Consumer Price Index (CPI) rose to 145.74 in July 2025, up slightly from 145.58 in June, signaling a continued increase in the cost of living. The CPI, which measures changes in the prices of a basket of consumer goods and services, stood at 139.94 in July 2024, marking a steady year-on-year climb.
This upward trend reflects ongoing inflationary pressures that are gradually eroding the purchasing power of Kenyan households. Rising prices in key sectors such as food, transport, and housing have made it more expensive for consumers to maintain their standard of living.
The CPI is a critical economic indicator used by the government and policymakers to guide fiscal and monetary decisions. A lower CPI typically indicates price stability and is generally better for the economy as it supports consumer spending and economic growth. However, persistent increases, as seen over the past year, may prompt adjustments in interest rates or subsidy policies to manage inflation.
As Kenya navigates post-pandemic recovery and global economic shocks, keeping inflation in check remains vital to safeguarding household welfare and economic stability. The government may need to implement targeted interventions to ease the burden on vulnerable populations.
