Kenya’s inflation inched up to 4.6 percent in September, slightly higher than the 4.5 percent recorded in August, the Kenya National Bureau of Statistics (KNBS) reported on Tuesday.
Month-on-month, inflation stood at 0.2 percent, with the overall Consumer Price Index (CPI) rising to 146.56 from 146.21 in August.
KNBS attributed the rise mainly to higher prices of food and non-alcoholic drinks (8.4%), transport (4.0%), and housing, water, electricity, gas, and other fuels (1.4%). Together, these three categories account for more than half of household spending.
The Central Bank of Kenya (CBK) continues to target an inflation band of 2.5%–7.5%, a range meant to cushion the economy against shocks such as volatile global oil prices and adverse weather patterns.
At the same time, fresh data shows the economy expanded by 5.0 percent in the second quarter of 2025, up from 4.6 percent a year earlier. The growth was powered by strong performances in agriculture (4.4%), transport and storage (5.4%), and finance and insurance (6.6%).
Construction and mining, both of which had contracted in the same quarter last year, bounced back with growth of 5.7 percent and 15.3 percent respectively. Electricity and water supply also posted a stronger 5.7 percent growth compared to just 1.2 percent in 2024.
Currency movements were mixed during the quarter. The Kenyan Shilling firmed up against the US Dollar by 1.2 percent but weakened against the Japanese Yen (6.5%), Pound Sterling (4.5%), and Euro (4.0%). Regionally, it fell by 2.7 percent against the Ugandan Shilling but gained against the Tanzanian Shilling.
President William Ruto had earlier projected that the economy would expand by 5.6 percent in 2025, compared to 4.7 percent in 2024.
