Kenyans feel the pinch of higher prices as August inflation ticks up to 4.5pc

Inflation concept. [Courtesy/GettyImages] Kenya's inflation rate rose to 4.5 per cent in August, driven by higher food, non-alcoholic beverages, and transport prices. This was an increase from 4.1 per cent in July, according to the Kenya National Bureau of Statistics (KNBS) in its August Consumer Price Index (CPI) released Friday. The food and non-alcoholic beverages index increased by 8.3 per cent, while transport rose 4.4 per cent and housing, water, electricity, gas and other fuels by 0.8 per cent year-on-year. The three categories accounted for over 57 per cent of the total weight across the 13 major expenditure categories. The CPI is defined as a measure of the weighted aggregate change over time in retail prices paid by consumers for a given basket of goods and services. The CPI measures the cost of purchasing this fixed basket of goods and services, comparing current prices to those of a base period, which for the current CPI is February 2019. The overall index increased from 145.74 in July 2025 to 146.21 in August 2025, reflecting a monthly inflation rate of 0.3 per cent. Between July and August 2025, consumer prices for selected goods showed mixed trends as electricity prices decreased over the period across both consumption bands. The cost of 50 kilowatt-hour (kWh) dropped from Sh1,288.82 in July to Sh1,259.65 in August. Similarly, the cost of 200kWh fell from Sh5,656.22 in July 2025 to Sh5,539.54 in August 2025. Between the two months, petrol prices declined slightly from Sh187.37 to Sh186.37 per litre. "In contrast, passenger transport costs rose sharply, with the country bus or matatu fare for the Mombasa to Nairobi route increasing from Sh1,300 to Sh1,500," said KNBS. In August 2025, prices in the alcoholic beverages, tobacco, and narcotics division recorded mixed changes. The price of beer (lagers and stouts) declined by 0.1 per cent, while spirits prices registered a modest increase of 0.5 per cent. Over the twelve months to August 2025, the alcoholic beverages, tobacco and narcotics division price level rose by 3.4 per cent. Miraa (khat) recorded the highest price rise within the category, increasing by 1.6 per cent. In August 2025, prices in the clothing and footwear division showed both declines and increases. The cost of men's leather shoes and men's shirts dropped by 0.3 per cent and 0.1 per cent, respectively. In contrast, upward movements were noted for other clothing items, with kanga or kikoi prices rising by 1.1 per cent, while girls' school uniform prices rose by 0.4 per cent, and men's suits prices by 0.6 per cent. In August, the furnishings, household equipment and routine household maintenance index recorded a slight overall decrease of 0.2 per cent. Declines were observed in detergents prices at -1.4 per cent, mattresses prices (-0.3), and laundry or bar soap prices at -0.1 per cent. In education in August 2025, prices of school textbooks for tertiary institutions declined by 0.3 per cent, and exercise book prices dropped slightly by 0.1 per cent. In contrast, upward price changes were noted for school textbooks at the secondary level and tour or honeymoon packages, both at 0.1 per cent.

Kenyans feel the pinch of higher prices as August inflation ticks up to 4.5pc

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Kenyans feel the pinch of higher prices as August inflation ticks up to 4.5pc

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