Inflation hits 7.3%: what rising fuel and food prices mean for your pocket
Prices in October 2026 were 7.3% higher than a year earlier, driven by fuel, transport and food. Here is what changed and why.
The Kenya National Bureau of Statistics (KNBS) reported on 30 October 2026 that annual inflation rose to 7.3% in October, up from 6.8% in September. In plain terms, the same basket of goods and services cost 7.3% more than in October 2025.
What drove it
- Transport prices were 17.1% higher than a year earlier.
- Food and non-alcoholic drinks were 10.2% higher.
- Housing, water, electricity and fuels were 3.7% higher.
Together these three groups make up more than 57% of the typical household's spending in the index, which is why they move the headline number so much.
What changed in one month (September to October)
| Item | September | October | Change |
|---|---|---|---|
| Petrol, per litre | Ksh214.95 | Ksh227.85 | +6.0% |
| Diesel, per litre | Ksh219.04 | Ksh228.77 | +4.4% |
| Kerosene, per litre | Ksh192.56 | Ksh220.88 | +14.7% |
| Fresh packeted milk | Ksh61.23 | Ksh64.13 | +4.7% |
| Sugar, per kg | Ksh165.79 | Ksh163.84 | −1.2% |
Not everything rose: sugar, maize flour and oranges became slightly cheaper, and electricity was almost unchanged.
Why fuel prices move
Kenya imports its petrol, diesel and kerosene, and the Energy and Petroleum Regulatory Authority (EPRA) sets maximum pump prices each month from the landed cost of those imports, plus taxes and levies. When world oil prices or shipping costs rise, Kenyan pump prices follow. In May 2026, for example, EPRA raised diesel by Ksh46.29 a litre after the landed cost of imported diesel jumped about 20% in a month.
What the Central Bank watches
The Central Bank of Kenya aims to keep inflation between 2.5% and 7.5%, so October's 7.3% is close to the top of that range. Going into its October meeting, the bank's policy rate stood at 8.75%, and it had flagged oil prices and conflict in the Middle East as risks. If inflation keeps rising, the bank may raise rates, which would make new and variable-rate loans more expensive.
