NAIROBI, Kenya – Kenya’s inflation rate surged to 6.7 percent in May, the highest level recorded since January 2024, as rising fuel prices, transport costs and food expenses piled pressure on households across the country.
Data released by the Kenya National Bureau of Statistics showed inflation accelerated sharply from 5.6 percent in April, marking the second consecutive month of significant increases in the cost of living.
According to KNBS, the spike was largely driven by higher prices in three key categories that account for more than 57 percent of the consumer inflation basket: transport, food and non-alcoholic beverages, and housing-related costs.
Transport costs recorded the steepest increase, rising by 16.5 percent, while food and non-alcoholic beverages rose by 9.4 percent. Housing, water, electricity, gas and other fuels increased by 3.4 percent.
The latest inflation surge comes after Kenya implemented fuel price increases in April and May following a sharp rise in global oil prices linked to the ongoing conflict involving Iran. The increase in pump prices has triggered a ripple effect across the economy, pushing up transportation costs and the prices of essential commodities.
The fuel hikes have already sparked public anger and industrial action, with matatu operators in several parts of the country staging strikes and protests over the rising cost of operations.
Economists warn that the sustained increase in transport and food prices could further strain household budgets at a time when many Kenyans are already grappling with high living costs.
The inflation rate is now edging closer to the upper end of the government’s preferred target range of 2.5 percent to 7.5 percent, raising questions about whether monetary authorities may be forced to reconsider their policy stance.
Attention is now shifting to the Central Bank of Kenya, which is scheduled to announce its next interest rate decision on June 9.
At its previous meeting in April, the Monetary Policy Committee left the benchmark lending rate unchanged, opting to monitor inflation trends and broader economic developments before making further adjustments.
Analysts say the latest inflation figures could complicate the Central Bank’s efforts to balance economic growth with price stability, especially if fuel and food costs continue rising in the coming weeks.
The sharp increase also highlights Kenya’s vulnerability to global economic shocks, particularly fluctuations in energy markets, which have a direct impact on transportation, manufacturing and household expenses.
With inflation now at a 28-month high, many consumers are expected to feel the pressure through higher costs of commuting, food purchases and utility bills, potentially dampening spending power across the economy.
