Inflation in Kenya Hits 6.7% in May 2026 as Transport and Food Costs Surges

According to the Kenya National Bureau of Statistics (KNBS), annual consumer price inflation accelerated to 6.7 per cent in May 2026, a jump from April’s 5.6 per cent and the highest rate recorded in over two years.

On a monthly basis, the Consumer Price Index (CPI) rose by 1.6 per cent, climbing from 152.15 in April to 154.56 in May. The hope that April’s sudden price surge was merely a temporary anomaly has been shattered, as Kenyans now confront an even more aggressive escalation in the cost of living.

Key Drivers of Inflation in May 2026

The primary engine of this month’s inflation was a massive spike in the energy and transportation sectors. The transport division index skyrocketed by 16.5 per cent over the past year, driven by a 6.1 per cent monthly surge in May alone. At the pump, diesel prices jumped by 18.4 per cent, while petrol increased by 8.4 per cent. Food and non-alcoholic beverages followed closely, with their index rising 9.4 per cent year-on-year. Monthly increases were led by tomatoes (11.2 per cent), spinach (5.2 per cent), and cabbage (5.0 per cent). A rare bright spot emerged in electricity costs, which declined by between 2.2 and 2.4 per cent, offering marginal relief on some utility bills.

For the average Kenyan, the most significant impact in May was on the cost of movement. Boda boda, matatu, and country bus fares all surged by 25.0 per cent in a single month, directly eating into the daily wages of workers and traders. Lower-income households were hit even harder by a 25.3 per cent monthly jump in kerosene prices, an essential fuel for cooking and lighting in many homes.

The core inflation (which tracks persistent domestic price pressures by excluding fresh food and energy) jumped to 3.2 per cent in May 2026. This is a notable rise from April’s 2.8 per cent and March’s 2.1 per cent. Such underlying pressures often demand a more aggressive monetary policy response from the Central Bank to prevent further erosion of the currency’s value.

The cooling trend observed throughout 2025 has been fully reversed. With the transport index reaching double digits and fuel volatility persisting, there is a high risk of secondary price hikes as manufacturers and retailers pass on higher logistical costs to consumers. The economy has now drifted significantly away from the low and stable inflation target that is generally regarded as beneficial for prosperity.

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