Kenya’s inflation rose sharply for the second consecutive month in May, reaching its highest level in more than two years, driven largely by increased fuel prices, according to the Kenya National Bureau of Statistics (KNBS).
Inflation climbed to 6.7% year-on-year in May, up from 5.6% in April, marking the highest rate since January 2024.
KNBS attributed the increase mainly to rising prices in key sectors, including:
Transport: 16.5%
Food and non-alcoholic beverages: 9.4%
Housing, water, electricity, gas and other fuels: 3.4%
These three categories account for 57% of Kenya’s inflation basket, making them the most influential drivers of overall price changes.
The rise in fuel prices followed increases in April and May, linked to a surge in global energy costs reportedly triggered by geopolitical tensions involving the U.S., Israel, and Iran.
The higher fuel costs have also affected transport operators, some of whom have gone on strike in protest against the price hikes.
Despite the increase, inflation remains within the government’s target range of 2.5% to 7.5%, though it is now near the upper limit.
The Central Bank of Kenya is expected to announce its next interest rate decision on June 9, after holding the key rate steady at its previous meeting in April.
