NAIROBI, Kenya – Good news! Your wallet might finally get a breather.
According to the National Treasury and Economic Planning, inflation in the country has taken a nosedive, hitting 3.5pc in February 2025, a significant drop from 6.3pc last year.
That’s right—after months of feeling the heat from skyrocketing prices, consumers can now enjoy some much-needed relief.
But what’s behind this welcome change? Let’s break it down.
Falling Prices: A Win for Households
The biggest takeaway? Prices of essential goods are cooling off. Fuel, electricity, and key food items like maize flour and sugar have all become cheaper, thanks to a combination of a stronger shilling and improved supply chains.
Take sugar, for example—it has dropped by over 25pc in some regions. Fuel prices? Down by 14pc.
Even the cost of electricity has dipped, giving both households and businesses some breathing room.
This is a drastic shift from last year when high fuel costs sent shockwaves through transportation and food pricing.
If this trend holds, Kenyan families might just start saving more or redirecting their money to other essentials, something that seemed impossible a year ago.
The National Treasury attributes this decline to a mix of economic policies and monetary measures. The Central Bank of Kenya (CBK) recently eased monetary policy, slashing interest rates to stimulate borrowing and investment.
Lower lending rates mean businesses can now access cheaper credit, keeping operations running smoothly without hiking prices.
Additionally, the government has cleared pending bills, injecting liquidity into the economy.
Social programs, like Inua Jamii and the Hustler Fund, have also played a role, giving low-income earners access to financial support. It’s a rare moment where economic strategies are actually making an impact where it matters most.
While inflation is on a downward trend, it’s still a game of balance.
Global fuel prices, supply chain disruptions, or unpredictable weather patterns could send things spiraling again.
But for now, Kenya is seeing one of its lowest inflation rates in recent years—something worth keeping an eye on.
