Kenya's inflation rate increased slightly to 6.5% in July from 6.4% in June, according to the Kenya National Bureau of Statistics (KNBS). The uptick was mainly influenced by higher electricity charges across various household consumption levels.

Between June and July, the cost for 200 kilowatt-hours rose to Sh5,648.30 from Sh5,476.34, while the 50 kilowatt-hour category increased to Sh1,286.84 from Sh1,243.85. In contrast, the price of a 13-kilogramme cooking gas refill fell to Sh3,432.21 from Sh3,470.82, and fuel prices remained stable with diesel at Sh224.04 per litre and petrol at Sh214.95.

Food Price Movements

  • Tomato prices declined to Sh113.47 per kilogramme from Sh117.87
  • Sifted maize flour (2 Kg) decreased to Sh157.15 from Sh159.78
  • Beef with bones rose to Sh768.34 per kilogramme from Sh760.75
  • Irish potatoes increased to Sh113.46 from Sh111.10
  • Cooking oil prices remained steady, slightly easing to Sh358.09 per litre

On an annual basis, inflation remains elevated due to rising costs in key areas such as food, transport, and housing-related expenses. KNBS highlighted that prices in the Food and Non-Alcoholic Beverages category rose by 9.0%, Transport by 15.6%, and Housing, Water, Electricity, Gas, and Other Fuels by 3.2%. These three sectors account for over 57% of the inflation basket.

Core inflation, which excludes volatile food and energy prices, inched up to 3.2% in July from 3.1% in June, while non-core inflation, covering these volatile items, slightly decreased to 15.0% from 15.1%.