Kenya’s Inflation Holds Steady at 4.5% in December 2025 Despite Soaring Food and Transport Prices Impacting Household Budgets

Kenya’s inflation stayed at 4.5% in December 2025. This is within the Central Bank of Kenya’s target range. Data from the Kenya National Bureau of Statistics (KNBS) and the Central Bank of Kenya (CBK) was released on January 1, 2026. It showed mixed trends in prices. Some goods rose sharply, while others fell. This helped households avoid steeper inflation.

Food costs were the main drivers of annual inflation. Tomato prices rose 30.3% year-on-year. Sukuma wiki increased 23.4% and mangoes 23.1%. Other staples also rose. Maize flour went up 13.2%, loose maize grain 12.6%, sugar 12.5%, and Irish potatoes 8.3%. Cooking oil increased slightly by 0.1%. KNBS said food and non-alcoholic beverages rose 7.8% over the year.

Transport costs also put pressure on households. Bus fares from Dandora in Nairobi to Luanda in Vihiga County jumped from KSh 1,500 to KSh 2,000 in December. Housing, water, gas, and other fuels rose 1.6%. Overall, transport costs increased 5.2% for the year.

Some items fell in price, cushioning households. Fresh packaged milk dropped 1.3%. Electricity prices fell 3.7%. Cooking oil, non-aromatic white rice, and white bread fell by 0.9%, 0.7%, and 0.1% respectively. Analysts say a stronger shilling and CBK interest rate cuts kept inflation below 5% since July 2025.

Many households still face financial pressure. An Infotrak survey released on December 30, 2025, showed unemployment was the top concern at 26%. High food costs followed at 25%. Rising education expenses also worried parents.

Overall, Kenya’s inflation is stable. However, rising food and transport prices continue to strain household budgets. Economic pressures remain a challenge for many citizens.