Kenya’s annual inflation rate rose to 3.8 percent in June 2025, according to the latest Consumer Price Index (CPI) and Inflation Report released by the Kenya National Bureau of Statistics (KNBS). The increase was largely fueled by higher prices in food, transport, and housing and utility services, key sectors that significantly impact household spending.
On a monthly basis, the inflation rate stood at 0.5 percent, with the overall CPI rising from 144.88 in May to 145.58 in June 2025.
KNBS Director General Dr. Macdonald G. Obudho noted that the primary contributors to inflation were Food and Non-Alcoholic Beverages (up 6.6% year-on-year), Transport (up 3.2%), and Housing, Water, Electricity, Gas and Other Fuels (up 0.2%). Together, these categories account for over half of Kenyan household expenditure.
Food Prices Surge, Worsening Household Burden
Food remained the largest single driver of inflation, contributing 2.0 percentage points to the overall rate. On a monthly basis, food and non-alcoholic beverages prices rose by 1.0 percent, with sharp increases in several staple items:
- Carrots rose by 11.1% (KSh. 128.97/kg)
- Cabbages jumped 10.8% (KSh. 85.10/kg)
- Sugar increased 5.5% (KSh. 184.13/kg)
- Loose maize grain rose 2.8%
- Spinach and sifted maize flour were up 2.3% and 2.1%, respectively
Other common foods like tomatoes, kale (sukuma wiki), and beef with bones also saw price rises. However, minor declines were noted in prices of salad cooking oil, unpacketed fresh milk, and Irish potatoes.
Transport and Energy Costs See Mixed Movement
The Transport sector registered a 0.7% increase in June, driven by a 1.6% rise in petrol prices, now averaging KSh. 178.19 per litre. Personal vehicle operation costs rose 1.2%, while country bus fares climbed 1.0%. In contrast, diesel prices declined by 1.1%, averaging KSh. 163.89 per litre.
In the Housing, Water, Electricity, and Fuels category, electricity costs dropped — down 1.6% for 50 kWh and 1.5% for 200 kWh units. However, the cost of solid fuels went up: firewood by 2.0%, charcoal by 1.0%. Meanwhile, kerosene and LPG prices fell slightly by 1.2% and 0.2%, respectively. Rent for a single room rose modestly by 0.2%.
Core vs. Non-Core Inflation
Core inflation, which excludes volatile food and fuel prices, rose to 3.0%, up from 2.8% in May. The core index increased from 128.97 to 129.47.
Non-core inflation, reflecting changes in food and energy prices, stood at 6.2%, with the index rising from 209.35 to 211.24.
- Core items contributed 2.7 percentage points to overall inflation
- Non-core items added 1.1 percentage points
Economic Outlook and Policy Implications
Although the inflation rate remains within the Central Bank of Kenya’s target range, rising food and energy prices may continue to pressure low-income households. Economic analysts suggest that sustained increases in staple costs could demand targeted policy responses, especially to enhance food security and social protection programs.
KNBS has reaffirmed its commitment to providing timely, credible data to inform policy and economic planning.
This report is based on the official June 2025 Consumer Price Index and Inflation Report by the Kenya National Bureau of Statistics (KNBS).
Written By Rodney Mbua
