Kenya Inflation

Inflation rises in July from June

Latest reading: Consumer prices increased 6.5% on a year-on-year basis in July, following a 6.4% rise in the previous month. Relative to the previous month's figures, there were higher price pressures for food and non-alcoholic beverages (+9.0% on a year-on-year basis vs +8.6% in June) and clothing (+2.2% vs +2.0% in June). In contrast, there were milder price pressures for housing, water, electricity, gas and other fuels (+3.2% vs +3.4% in June) and transportation (+15.6% vs +16.1% in June). Lastly, consumer prices were up 0.19% in July on a month-on-month basis, following a 0.23% increase in the prior month.

Panelist insight: EIU analysts commented on the inflation outlook: “We expect relatively small monthly increases in prices in the remainder of the year, but given base effects, the annual average increase in prices will still reach 5.7% in 2026, up from 4.1% in 2025. […] Our forecast of relatively firm inflation assumes that the central bank will tolerate a slightly above-target level of inflation in the interests of relatively rapid GDP growth, which will help the government to rein in its fiscal deficit.”

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Kenyan inflation projections for the next ten years from a panel of 16 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Kenyan inflation.

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