NAIROBI — Kenya’s inflation increased in September even as the economy registered solid growth in the second quarter of the year, official data show.
The Kenya National Bureau of Statistics (KNBS) said on Tuesday that annual inflation rose to 4.6 percent, up slightly from 4.5 percent in August. On a month-to-month basis, consumer prices increased by 0.2 percent.
The rise was largely driven by higher costs for food and non-alcoholic drinks, which climbed 8.4 percent. Transport costs rose by 4 percent, while housing, water, electricity, gas and other fuels went up 1.4 percent. Together, these categories make up more than half of the household spending basket.
The Central Bank of Kenya, which sets policy based on an inflation target of 2.5 to 7.5 percent, is expected to keep a close eye on price pressures. Global oil prices, volatile weather, and currency shifts continue to shape the outlook.
At the same time, the economy expanded by 5 percent in the three months to June, compared with 4.6 percent in the same period last year. KNBS attributed the growth to strong performances in agriculture, transport and storage, and financial services.
The agricultural sector grew 4.4 percent, supported by favourable weather and higher production. Transport and storage expanded 5.4 percent, while financial and insurance activities rose 6.6 percent. Construction and mining also rebounded sharply, reversing contractions recorded in 2024.
“Electricity and water supply activities also recorded improved performance, posting growth of 5.7 percent compared to 1.2 percent in the same quarter last year,” the bureau said.
The currency picture was mixed. The shilling gained 1.2 percent against the US dollar in the quarter but weakened against the Japanese yen, the pound sterling and the euro. Regionally, it slipped against the Ugandan shilling but gained ground on Tanzania’s currency.
In August, President William Ruto projected that the economy would grow 5.6 percent this year, outpacing the National Treasury’s estimate of 5.3 percent and the Central Bank’s 5.2 percent forecast. Last year, growth stood at 4.7 percent.
For ordinary Kenyans, the figures tell a mixed story. Growth remains steady, but many households continue to feel the pinch of rising food and transport costs. Analysts warn that while the numbers suggest resilience, the real test lies in whether wage growth and job creation can keep pace with the higher cost of living.
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