Kenya’s annual inflation rate rose to 3.6% in March 2025, marking a six-month high from 3.5% in February.
Despite this uptick, inflation has remained below the Central Bank of Kenya’s (CBK) 5% target midpoint for the ninth consecutive month.
According to the latest data from the Kenya National Bureau of Statistics (KNBS), the inflationary pressures were driven by sharp increases in food and energy prices, particularly in the non-core inflation segment, which surged 7.4 percent.
Key price movements included:
Core Inflation (2.2%)
• Cigarettes: +23.6%
• Cooking oil (salad): +5.8%
• Sugar: +12.3%
Non-Core Inflation (7.4%)
• Sukuma wiki: +34.2%
• Tomatoes: +29.3%
• Electricity (200kWh): +15.5%
• Diesel: +12.2%
On a monthly basis, consumer prices rose by 0.4 percent in March, accelerating slightly from a 0.3 percent increase in February.
Analysts attribute the rising inflation to supply chain disruptions, seasonal price fluctuations in food commodities, and global oil price trends.
Outlook: Inflation to Rise Gradually
Projections from Trading Economics indicate that inflation could reach 3.8 percent by the end of the first quarter of 2025, with a long-term forecast of 4.1 percent in 2026.
However, CBK remains confident that inflation will stay within the target range, supported by stable monetary policies and improved agricultural output.
