The annual consumer price inflation edged up to 4.4% in March 2026, a marginal increase from 4.3% in February 2026, according to the latest report by the Kenya National Bureau of Statistics (KNBS). The Consumer Price Index (CPI) climbed from 149.20 in February to 150.00 in March 2026, representing a month-on-month increase of 0.5 %.
Interestingly, while the headline annual figure rose, core inflation remained steady at 2.1 %. The broader economy continues to navigate a delicate balance between stabilizing domestic prices and persistent upward pressure from specific volatile commodities and the effects of the Iranian war.
The cost of living continues to be a central concern for Kenyan families as the first quarter of 2026 comes to a close
What Pushed Inflation Prices Up and Down
- Upward Pressures: The Food and Non-Alcoholic Beverages index rose 7.7 % over the year. Monthly, a sharp 13.3 % jump in the price of beef with bones was a major driver. Additionally, electricity costs surged by 2.5 % for 50 kwh and 2.2 % for 200 kWh between February and March.
- Downward Pressures: Some relief was found at the green grocer, as cabbages dropped by 3.8 % and loose maize grain fell by 2.4 %. Sugar prices also saw a marginal decline of 1.3 %. Notably, petrol and diesel prices remained unchanged during the review period, providing a much-needed anchor for the transport division.
For many households, the monthly rise was felt mostly in the kitchen and the medicine cabinet. The drop in cabbage and maize prices helped offset some costs, but the spike in beef and electricity prices directly impacted the cost of preparing daily meals. Furthermore, the health division recorded a 0.3 % monthly increase, driven by a significant 2.8 % rise in the cost of cancer medicine. Putting more pressure on the financial burden on families managing chronic illnesses.
Broadly, the economy continues to navigate these shifts with transport (3.8%) and housing/utilities 2.0% remaining key year-on-year contributors to the overall 4.4 % rate.
If electricity costs continue their upward trajectory, they may further strain the housing, water, electricity, gas and other fuels division, which already saw a 0.4 % monthly rise. However, the stability in fuel prices has so far offered a potential buffer against secondary price hikes in the coming months.
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