Kenya’s inflation rate increased to 4.5 percent in August 2025 from 4.1 percent in July as transport fares, food, and non-alcoholic drinks raised the cost of living, the Kenya National Bureau of Statistics (KNBS) reported.
Food and Transport Drive Inflation
According to the August Consumer Price Index (CPI), food and non-alcoholic beverages rose 8.3 percent and transport rates surged 4.4 percent compared to the same period last year, said the August Consumer Price Index (CPI). Housing, water, electricity, gas, and other fuels rose by 0.8 percent.
KNBS noted that these three divisions together make up more than 57 percent of the total weight across the 13 key expenditure categories in the CPI basket.
What the CPI Measures
The CPI tracks the price of buying a fixed basket of items and goods and the comparison with a base period – in this case, February 2019.
The index rose from 145.74 in July to 146.21 in August, representing a month’s inflation rate of 0.3 percent.
Energy and Fuel Costs Offer Relief
Some costs eased during the month. Electricity bills declined, with the price for 50 kilowatt-hours dropping from Sh1,288.82 in July to Sh1,259.65 in August, and 200 kWh from Sh5,656.22 to Sh5,539.54.
Petrol dropped slightly, from Sh187.37 to Sh186.37 per litre.
Sharp Rise in Passenger Transport
Despite lower fuel prices, passenger transport became more expensive. KNBS reported:
“Passenger transport costs rose sharply, with the country bus or matatu fare for the Mombasa to Nairobi route increasing from Sh1,300 to Sh1,500.”
Alcohol, Tobacco and Narcotics
This category showed mixed price movements. Beer (stouts and lagers) went down by 0.1 percent, while spirits went up by 0.5 percent.
Year-on-year, the sector enjoyed a 3.4 percent growth, with miraa (khat) recording the steepest rise at 1.6 percent.
Clothing and Footwear
The clothing and footwear category reflected varied changes.
-
Men’s leather shoes dropped 0.3 percent
-
Men’s shirts fell 0.1 percent
-
Kanga/kikoi rose 1.1 percent
-
Girls’ school uniforms increased 0.4 percent
-
Men’s suits went up 0.6 percent
Household Goods and Maintenance
The furnishings, household equipment, and routine maintenance index dipped 0.2 percent overall.
Key declines included:
-
Detergents (-1.4 percent)
-
Mattresses (-0.3 percent)
-
Laundry or bar soap (-0.1 percent)
Education Costs Show Mixed Trends
Education-related prices also shifted unevenly.
-
Tertiary textbooks fell 0.3 percent
-
Exercise books slipped 0.1 percent
-
Secondary textbooks and tour/honeymoon packages both rose 0.1 percent
The post From Matatu Fares to Miraa: What Drove Kenya’s August Inflation Rise appeared first on Bossnana.
