FX.co ★ Kenya Inflation Rate Hits Over 3-Year High of 7.3%

Kenya’s annual inflation rate accelerated to 7.3% in October 2026, the highest level since July 2023 and up from 6.8% in September. This was the seventh straight month that inflation remained above the central bank’s 5% midpoint target.

The main inflationary pressure came from transport costs, which rose 17.1% year-on-year, compared with 15.6% in September, following a fuel pump price increase announced by the Energy and Petroleum Regulatory Authority (EPRA) earlier in October. Fuel prices saw some of the sharpest gains compared with October of the previous year, with kerosene up 41.6%, diesel 32.5%, and petrol 22.8%.

Food and non-alcoholic beverage inflation also picked up, rising to 10.2% from 9.5%, driven by higher prices for beef, beans, cabbage, Irish potatoes, oranges, and cooking oil. In addition, prices for housing, water, electricity, gas and other fuels increased at a faster pace, climbing 3.7% year-on-year compared with 3.2% in September.

On a monthly basis, the consumer price index (CPI) rose 0.7% in October, following a 0.4% increase in the previous month.