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Prices rose 6.8% in September, led by transport
Inflation edged up from 6.6% in August, with transport costs 15.6% higher than a year ago. The Central Bank has since kept its lending rate at 8.75%.
Prices6.8%
inflation in September, up from 6.6% in August
Prices in Kenya were 6.8% higher in September than a year earlier, according to the Kenya National Bureau of Statistics, up from 6.6% in August.
Transport rose fastest, at 15.6% over the year. Food and non-alcoholic drinks were up 9.5%, and food prices alone rose 0.9% in the month from August. Housing, water, electricity, gas and other fuels were up 3.2%.
The Central Bank held its rate
On 7 October the Central Bank’s Monetary Policy Committee kept the Central Bank Rate, which steers what banks charge on loans and overdrafts, at 8.75%. It expects inflation to stay within its target range, helped by a stable shilling and the rains forecast for October to December. Its next meeting is in December.
Its statement adds that core inflation, which leaves out the most volatile prices, rose to 4.0% in September from 3.4%, mainly on processed foods - milk, wheat products and cooking oil.
Why it matters
- Transport up 15.6% in a year shows up in the cost of moving raw materials in and finished goods out, whoever pays for the lorry.
- Food prices rising faster than wages tends to squeeze what customers can spend on everything else.
- The rate is unchanged, so the Central Bank has not pushed loan and overdraft costs either way. Banks averaged 14.4% in September, it says.
Sources
- Capital FM - Kenya’s inflation rises to 6.8% in September on higher food and fuel prices · 30 September 2026
- Central Bank of Kenya - Monetary Policy Committee press release · 7 October 2026
Updated 8 October 2026.
