Inflation jumps to 6.6pc as cost-of-living crisis deepens ahead of 2027 polls

Kenya’s inflation hits 6.6pc as rising food and transport costs squeeze households. [iStockphoto]

Kenya's annual inflation rate accelerated to 6.6 per cent in August 2026, up from 6.5 per cent in July, according to the Kenya National Bureau of Statistics (KNBS).

The rise in the cost-of-living measure, driven largely by soaring transport and food costs, piles fresh pressure on President William Ruto's administration just under a year before the General Election scheduled for August 2027.

The Consumer Price Index increased by 0.4 per cent month-on-month, hitting a three-month high as external shocks continued to ripple through the local economy.

The statistics office reported that transport costs surged 15.7 per cent year-on-year, contributing 1.5 percentage points to the total inflation figure.

 "Annual consumer price inflation was 6.6 per cent in August 2026, as measured by the Consumer Price Index (CPI). This implies that the general price level was 6.6 per cent higher in August 2026 than it was in August 2025," KNBS said.

 "The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (9.0 per cent), Transport (15.7 per cent), and Housing, Water, Electricity, Gas and other fuels (3.6 per cent) over the one year," KNBS noted.

Higher fuel prices have inevitably spilt over into food and non-alcoholic beverages, which saw a 9.0 per cent increase, contributing a massive 2.6 percentage points to the headline rate.

Non-core food items alone accounted for 1.8 points of this pressure. Additionally, costs for housing, water, electricity, gas, and other fuels rose by 3.6 per cent.

The national average price of a kilogramme of beef with bones jumped 12.1 per cent year-on-year to Sh777.36, while Kale (Sukuma Wiki) climbed 29.8 per cent to Sh121.21 per kg.

Meanwhile, although the price of a 2kg packet of maize flour fell slightly to Sh152.89, the broader cost of feeding a family remains significantly higher than a year ago.

The report also highlighted a slight relief in diesel prices, which fell from Sh224.04 to Sh219.04 per litre, a decline of about Sh5.

This economic turbulence complicates the government's narrative of stability.

Analysts note that while President Ruto has achieved substantial macroeconomic gains, such as lowering inflation from double digits and stabilising the shilling around Sh129.5 to the dollar, these benefits have largely failed to translate into cheaper goods for consumers.

Treasury Cabinet Secretary John Mbadi has faced sharp criticism over his recent remarks suggesting Kenyans are better off because of increased consumption of soft drinks.

The opposition and civil society argue that with core inflation rising to 3.4 per cent and non-core inflation at a steep 14.7 per cent, underlying price pressures are intensifying, making it harder for ordinary citizens to cope.

The financial strain is fueling street protests. A recent study by Odipo Dev and Amnesty International Kenya documented 1,292 protests between January 2025 and June 2026, with economic grievances acting as the leading driver.

In May 2026, anti-fuel-hike protests triggered widespread demonstrations as motorists and traders complained about the impact on transport and daily living costs.

The cost-of-living measure has now remained above the midpoint of the central bank's 2.5 per cent to 7.5 per cent target range for a fifth consecutive month.

With the IEBC officially setting the election period, analysts say Ruto's administration must find ways to visibly ease the burden on households if it hopes to secure victory in 2027.