The Kenya National Bureau of Statistics (KNBS) has provided insight into why many Kenyans continue to experience a high cost of living even though the national inflation rate remained steady at 6.5 percent in July 2026.
According to the latest Consumer Price Indices and Inflation Report, the key issue lies in the uneven rise of prices across different household expenses. The most significant increases have been recorded in essential areas such as food, transport, and housing, which together make up over 57 percent of the average household expenditure.
Key Drivers of Household Inflation
- Food and Non-Alcoholic Beverages: Prices increased by 9.0 percent over the year, impacting daily household budgets.
- Transport: This category saw the sharpest rise at 15.6 percent, reflecting higher commuting and logistics costs despite stable fuel prices.
- Housing, Water, Electricity, Gas, and Other Fuels: Costs rose by 3.2 percent, with electricity bills notably increasing in July.
While some costs such as LPG cooking gas and certain food items like maize flour and tomatoes saw slight price reductions in July, these savings were outweighed by increases in electricity bills and rent. For example, the average electricity bill for households consuming 200 kWh rose by 3.1 percent, and single-room rent edged up marginally.
Impact on Kenyan Households
The report explains that although headline inflation remained unchanged from June to July, the persistent price hikes in these core categories continue to strain household finances. Transport inflation remains particularly high, even though fuel prices have not changed, indicating other factors driving up costs.
KNBS emphasizes that as long as costs for essential services and goods increase faster than the overall inflation rate, many Kenyans will continue to feel the financial pressure despite stable headline figures.
