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16 October 2026· By Mwenendo

Transport Pulls Ahead: Kenya's Inflation Reaches 6.8% as Transport Costs Rise 15.6% on Year

Key Highlights

  • Kenya's annual inflation rose to 6.8% in September from 6.6% in August, with transport prices up 15.6% on the year, the fastest rise among the major divisions.
  • Food and non-alcoholic beverages rose 9.5% on the year and 0.9% on the month, and food and transport together contributed 4.4 percentage points of the 6.8% headline rate.
  • Core inflation climbed to 4.0% from 3.4% while non-core inflation stood at 14.0%, and the higher pump price ceilings from 15 October add fresh pressure on transport costs.

Kenya's annual inflation rose to 6.8% in September from 6.6% in August, led by a 15.6% annual rise in transport prices and higher food costs.

Transport Pulls Ahead: Kenya's Inflation Reaches 6.8% as Transport Costs Rise 15.6% on Year

The reading matters because the pressure is coming from items households cannot easily avoid. The figures come from the Kenya National Bureau of Statistics (KNBS) release of 30 September, as reported by People Daily. Monthly inflation was 0.4%, with the consumer price index rising to 156.47 from 155.85 in August.

Food and fuel drive the rise

Food and non-alcoholic beverages rose 9.5% on the year and 0.9% on the month. Milk prices rose sharply, while tomatoes and spinach fell.

Transport was the fastest-rising major division at 15.6% annually. Diesel averaged KSh 219.04 ($1.69) a litre, up 26.9% on a year earlier, and petrol KSh 214.95 ($1.66), up 15.8%. Housing, water, electricity, gas and other fuels rose 3.2%, with electricity prices falling during the month.

Food and transport together contributed 4.4 percentage points of the headline rate: 2.8 points from food and 1.6 points from transport.

Core inflation moves up

Core inflation rose to 4.0% from 3.4% in August, while non-core inflation, which captures more volatile items, stood at 14.0%. Core contributed 4.2 percentage points to the headline rate and non-core 2.6 points.

The Central Bank of Kenya held its rate at 8.75% on 7 October, according to its weekly bulletin, as Mwenendo earlier reported in its coverage of the policy committee decision. The committee said it will act further if oil prices or second-round effects require it, which makes the rise in core inflation the figure to watch.

Fuel increase adds risk

The next pressure point is already in place. The Energy and Petroleum Regulatory Authority raised maximum pump prices from 15 October, lifting super petrol by KSh 12.93 and kerosene by KSh 28.49 a litre. As Mwenendo earlier reported, pump prices had held steady in the previous cycle, so this is a fresh cost for transporters.

Higher fuel costs usually feed into transport and food prices, so the October reading from KNBS will show whether September's rise was a pause or the start of a run. Pump prices alone will not settle that question; the full consumer price series will.

#Kenya
#inflation
#KNBS
#transport
#food prices
#fuel

In Summary

What did inflation do in September?
Annual inflation rose to 6.8% from 6.6% in August; monthly inflation was 0.4%.
Who published the figures?
The Kenya National Bureau of Statistics, in its release of 30 September 2026.
What drove the rise?
Transport rose 15.6% and food 9.5% on the year; together they added 4.4 percentage points.
How did core inflation move?
Core rose to 4.0% from 3.4%, while non-core inflation was 14.0%.
When does fuel add pressure?
Pump price ceilings rose from 15 October, lifting petrol by KSh 12.93 a litre.
Where is the pressure felt?
Across Kenyan households through transport, food and household energy costs.
AI images used for illustration purposes. All news and stories are factual.

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