Kenya’s annual inflation rate remained unchanged at 3.8% in June, matching the figure recorded in May, according to data released on Monday by the Kenya National Bureau of Statistics (KNBS).
The steady inflation was primarily driven by increased prices in key categories such as food and non-alcoholic beverages, transport, and housing, KNBS said in its monthly Consumer Price Index (CPI) report.
On a month-on-month basis, inflation was recorded at 0.5%, also the same as in May, reflecting continued price stability across most consumer categories.
The current rate keeps inflation well within the Central Bank of Kenya’s (CBK) target range of 2.5% to 7.5%, reinforcing the perception that inflationary pressures are under control despite global and domestic economic uncertainties.
In June, the CBK cut its benchmark lending rate by 25 basis points to 9.75%, citing the need to provide further monetary support to stimulate economic growth. The rate cut signaled the bank’s confidence in the country’s inflation outlook and its intention to ease credit conditions for businesses and households.
Kenya’s economy has shown resilience amid global pressures, with stable inflation providing room for policy flexibility as the country navigates post-drought recovery, fluctuating energy costs, and international market trends.
Written By Rodney Mbua
