The Kenya National Bureau of Statistics (KNBS) has revealed that Kenyans continue to face financial strain despite fuel prices remaining steady in July 2026.
According to the latest Consumer Price Index (CPI) and Inflation Report released on July 31, annual inflation edged up from 6.4% in June to 6.5% in July, indicating that overall prices for goods and services were higher than a year earlier.
Key factors driving inflation
- Food and beverages: The cost of food and non-alcoholic drinks rose by 9.0%, with staples such as mangoes, potatoes, sukuma wiki, beef, onions, sugar, and fresh milk becoming more expensive.
- Transport: Despite fuel prices holding steady—petrol at Ksh214.95, diesel at Ksh224.04 per litre, and kerosene unchanged—transport costs increased by 15.6%, reflecting earlier fuel price hikes and rising operational expenses.
- Housing and utilities: Charges for electricity and related utilities went up by 3.2%, with electricity bills for typical consumption bands increasing by over 3% during the month.
Mixed price movements offer limited relief
Some essential items recorded price drops in July, including tomatoes (-3.7%), carrots (-3.6%), sifted maize flour (-1.6%), fortified maize flour (-1.2%), and a 1.1% reduction in the cost of refilling a 13-kilogram cooking gas cylinder. Beans and cooking oil also saw slight price decreases.
However, these decreases were insufficient to offset the rising costs in other critical areas, leaving many households grappling with higher monthly expenses.
Inflation outlook
Core inflation, which excludes volatile food and energy prices, stood at 3.2%, while non-core inflation remained high at 15.0%, underscoring the persistent impact of food and energy costs on household budgets.
The report highlights that stable fuel prices alone have not alleviated the overall cost pressures facing Kenyan consumers, as increases in electricity, transport, and key food prices continue to push inflation upwards.
