Kenya’s annual consumer price inflation increased to 4.4% in March 2026 from 4.3% the previous month, the Kenya National Bureau of Statistics (KNBS) reported on Tuesday.
The modest uptick represents a partial reversal of February’s decline but keeps the headline rate anchored in the low-to-mid 4% range observed since late 2025. For context, inflation stood at 4.4% in January 2026 and 4.49% in December 2025, reflecting a period of relative stability following higher readings earlier in the cycle.
Food inflation drives monthly acceleration
On a month-on-month basis, the Consumer Price Index (CPI) rose 0.5% in March, accelerating from a 0.2% increase in February. This pickup was largely propelled by the three dominant categories, food and non-alcoholic beverages, transport, and housing, water, electricity, gas and other fuels which collectively represent over 57% of the CPI basket.
Year-on-year, food and non-alcoholic beverages prices climbed 7.7% in March, up from 7.3% in February, continuing to exert the strongest upward pressure on the overall index. Transport costs increased 3.8%, while housing, water, electricity, gas and other fuels rose a more moderate 2.0%. The KNBS data confirmed that the general price level in March 2026 was 4.4% higher than in March 2025.
Core inflation, which excludes volatile food and energy items, has remained subdued in recent months, suggesting underlying price pressures are contained despite food supply challenges. Non-core inflation, heavily influenced by food, has been the primary contributor to headline movements.
Despite the slight March increase, inflation remains comfortably within the Central Bank of Kenya’s (CBK) medium-term target band of 2.5-7.5%, well below the 5.0% midpoint. This sustained moderation follows a broader downward trajectory through much of 2025, supported by stabilising global commodity prices, prudent monetary policy, and domestic supply chain improvements.
The latest figures arrive against a backdrop of stabilising international oil prices and ongoing government efforts to bolster food security amid occasional weather-related disruptions. However, persistent food price volatility driven by items such as fresh produce and staples continues to pose upside risks to the inflation outlook.
No immediate policy response was announced by the CBK following the release. The central bank had previously eased its benchmark rate in early 2026, citing benign inflation trends. Analysts will closely monitor whether this minor rebound prompts any adjustment at the next Monetary Policy Committee meeting.
Kenya’s economy is projected to expand by approximately 5% in 2026, benefiting from the relatively stable inflation environment that supports consumer purchasing power and business planning. Lower and predictable inflation also aids in maintaining exchange rate stability and attracting investment.
For Kenyan households, the data underscores mixed realities: while overall price increases remain manageable, elevated food costs continue to strain budgets, particularly for lower-income groups. Businesses, meanwhile, operate under a predictable cost environment that favours expansion in non-food sectors.
Overall, the March reading reinforces Kenya’s reputation for macroeconomic resilience in the region, even as authorities remain vigilant against potential external shocks such as global energy fluctuations or adverse climate events.
