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

3 articles · Updated · farmersreviewafrica.com · Jun 29

Kenya’s annual inflation accelerated to 6.7% in May from 5.6% in April, with food and non-alcoholic drinks up 9.4% and transport costs jumping 16.5%.
The pressure was concentrated in essentials rather than the broader economy: core inflation was 3.2%, while food and energy inflation reached 16.0%; tomato prices alone rose 45.7% after heavy rain damaged farms and roads.
Fuel and logistics costs are amplifying price shocks because Kenya imports much of its food and still faces supply gaps, including an annual egg shortfall of about 5 billion.
The Central Bank of Kenya held its policy rate at 8.75% on June 9 and cut its 2026 growth forecast to 4.9%, as rising costs squeeze activity—Stanbic’s PMI fell to 46.6 in May.
June inflation data due June 30 will show whether an EPRA diesel price cut of about 10 shillings a litre is easing pressures that farmers and businesses still expect to persist.

Sources

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businesstoday.co.ke1d ago

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africaagricultureinsight.com1d ago

Kenya's 5 Billion Egg Gap Links Fuel Shocks to Food Prices and Central Bank Rate Decisions | Africa Agriculture Insight

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Kenya’s May 2026 Inflation Surge: Causes, Impacts, and Policy Responses Amid Global and Domestic Turmoil

Overview

In May 2026, Kenya experienced a sharp rise in inflation, mainly driven by escalating costs in transport and food sectors. This surge was fueled by persistent increases in fuel prices, which not only directly affected consumers but also triggered broader economic effects, pushing inflation close to the Central Bank’s upper target. Geopolitical instability and wider economic challenges further intensified these pressures, raising concerns about the country’s economic outlook and the daily lives of households. The combined impact of these factors highlights the complex and interconnected drivers behind Kenya’s inflation surge during this period.

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