Kenya’s inflation eased slightly to 3.8 per cent in May 2025, down from 4.1 per cent in April, according to new data from the Kenya National Bureau of Statistics (KNBS). However, the cost of living remained high for many households due to rising food, transport, and housing expenses.
The latest KNBS report reveals that the price of basic commodities used daily by Kenyans continued to rise in some areas despite the overall decline in inflation.
Between April and May, the cost of food and non-alcoholic beverages went up by 1.2 per cent. Key contributors included the price of sugar, which rose by 4.3 per cent, sifted maize flour by 3.9 per cent, and sukuma wiki (kale) by 3.5 per cent.
Still, a few commodities offered relief, with prices of Irish potatoes, oranges, and fresh packaged cow milk declining 3.7,1.8, and 0.6 per cent respectively.
On energy, electricity prices dropped slightly. A 50-kilowatt-hour (kWh) unit fell by one per cent, while a 200 kWh unit dropped by zero point nine per cent. The price of a 13kg cooking gas cylinder also declined marginally by zero point five per cent. However, these reductions had a minimal impact on the broader consumer price index as fuel prices remained unchanged.
“The housing, water, electricity, gas, and other fuels index had a negligible change between April and May,” the KNBS report noted. Rent for a single room stayed at Ksh4,170 on average, though it had increased by one point seven per cent compared to May 2024.
Transport costs — which account for nearly 10 per cent of household spending — rose zero point two per cent in May, mainly due to increased international flight fares. Petrol and diesel prices were unchanged, but over the past year, transport costs have risen by two point three per cent.
Other sectors saw modest changes. Education services edged up zero point two per cent from April, translating to a two point nine per cent annual rise. Restaurants and accommodation costs also rose by zero point one per cent, while insurance and financial services remained unchanged for the month but increased zero point nine per cent over the year.
Personal care and social protection services increased by zero point four per cent in May, with a yearly rise of three point seven per cent.
KNBS broke down the data further to show that core inflation — which excludes volatile food and energy prices — stood at two point eight per cent. Non-core inflation, which includes these volatile items, was much higher at six per cent.
The highest increase in the core category was recorded in cigarette prices, which jumped by twenty-five point five per cent, possibly due to tax changes. Other notable increases were in sifted maize flour (fourteen per cent), cooking oil (six point two per cent), and wheat flour (nine point two per cent). Sugar and milk saw relatively smaller increases of one per cent and one point eight per cent, respectively.
In the non-core category, the biggest drivers were sukuma wiki (nineteen point five per cent), tomatoes (eleven point five per cent), petrol (nine point four per cent), and diesel (seven point nine per cent). Electricity contributed modestly, with 50 kWh and 200 kWh units increasing by two per cent and four point two per cent, respectively.
While the slight decline in overall inflation offers some relief, economists warn that persistent price increases in food and fuel — the core of household spending — could continue to strain low-income earners.
The KNBS noted that the core Consumer Price Index basket accounts for eighty-one point one per cent of the total CPI, making the non-core component’s impact all the more significant when prices surge.
