What You Need to Know
Kenya’s annual inflation reached 4.4% in March 2026, driven by significant increases in food, transport, and housing costs. The Consumer Price Index (CPI) rose, with notable price hikes in tomatoes and potatoes, affecting household budgets and spending patterns across the country. Rising costs of essential goods continue to raise concerns about the cost of living in Kenya.
Africa-Press – Kenya. Kenya’s annual inflation rose to 4.4 per cent in March 2026, largely driven by rising costs of food, transport and housing-related expenses, according to the Kenya National Bureau of Statistics (KNBS).
Food and non-alcoholic beverages, transport, and housing, water, electricity, gas and other fuels account for over 57 per cent of the Consumer Price Index (CPI), underscoring their significant impact on household budgets.
CPI measures the weighted change in retail prices paid by consumers for a fixed basket of goods and services over time. It compares current prices to a base period, which for the current CPI is February 2019. The inflation rate represents the percentage change in the CPI between two periods.
“The overall index increased from 149.20 in February 2026 to 150.00 in March 2026, resulting in a monthly inflation rate of 0.5 per cent. The year-on-year inflation stood at 4.4 per cent in March 2026,” the KNBS report states.
The food and non-alcoholic beverages index recorded the sharpest increase, rising 7.7 per cent compared to March 2025. The price of tomatoes increased by 23.2 per cent over the year to an average price of Ksh 99.60 per kilogram from Ksh80.88. Tomatoes also surged 13.3 per cent from February 2026.
Potato prices rose 18.8 per cent to an average price of Ksh107.16 per kilogram from Ksh90.22 in the one-year period. Despite an annual increase, sugar, maize grain and cabbages fell by 1.3, 2.4 and 3.8 per cent respectively in the last month.
Transport costs increased 3.8 per cent over the year, although fuel prices remained stable in March.
“During the period between February 2026 and March 2026, prices of transport-related items showed mixed trends. The price of diesel and petrol remained the same in the review period,” the report reads.
The category covering housing, water, electricity, gas and other fuels rose 2 per cent annually. Month-on-month, electricity prices increased by 2.5 per cent for 50 kilowatt-hour and 2.2 per cent for 200 kilowatt-hour, while gas/LPG declined slightly by 0.1 per cent. Rent for single rooms remained unchanged.
Other categories recorded smaller increases. The alcoholic beverages, tobacco and narcotics division rose 2.3 per cent annually, with beer prices climbing slightly by 0.3 per cent since last month.
The health index recorded 2.7 per cent inflation over the year. In terms of monthly figures, cancer medication indicated a 2.8 per cent surge. General practitioner fees rose marginally by 0.1 per cent.
Education costs rose 3.3 per cent over the year while insurance and financial services showed a modest 0.7 per cent increase in the same period.
Personal care, social protection and miscellaneous goods and services increased by 2.5 per cent annually, led by toilet paper, body lotion and modest increases in hairdressing services.
Overall, March’s CPI figures highlight how rising costs in essential goods, particularly food, transport, and utilities, continue to put pressure on Kenyan households, shaping spending patterns and raising concerns about the cost of living.
Kenya has faced fluctuating inflation rates over the years, often influenced by agricultural production and global commodity prices. The reliance on food imports and the impact of climate change on local agriculture have contributed to price volatility. Recent trends indicate that inflationary pressures are increasingly linked to essential goods, which are critical for everyday living, highlighting the economic challenges faced by many households in the country. Understanding these dynamics is crucial for policymakers aiming to stabilize the economy and support vulnerable populations.
