Kenya’s inflation remained contained in March 2026, in a move that offers the monetary policy committee and policymakers room to maintain or even ease interest rates as price pressures stay within target.
Fresh data from the Kenya National Bureau of Statistics (KNBS) shows annual inflation stood at 4.4% in March, meaning the general price level was moderately higher than the same period last year, but still within the Central Bank of Kenya target band of around 5%.
On a monthly basis, prices rose 0.5%, with the Consumer Price Index (CPI) increasing to 150.0 from 149.2 in February. The uptick signals steady, though not runaway, increases across key household spending categories.
Food prices remain the biggest driver of inflation, having surged 7.7% over the past year, even as some staples such as sugar and maize eased in March. However, higher prices for tomatoes and beef continued to push up household food bills. Transport costs rose 3.8% year-on-year, while housing-related expenses—including electricity and fuel—edged up 2.0%, reinforcing pressure on essential spending.
Food, transport and housing accounted for more than half of the consumer basket, making them critical in shaping overall inflation trends in March.
Core inflation — which excludes volatile items — eased to 2.1%, pointing to relatively stable underlying demand. In contrast, non-core inflation stood at 10.8%, highlighting continued volatility in food and energy prices.
While other sectors such as health, communication, and hospitality recorded modest increases, the broader picture is one of gradual, manageable price growth rather than sharp spikes.
The stable inflation environment may signal predictability in costs and even support expectations that borrowing conditions could remain favourable in the near term, however, persistent increases in essential goods—particularly food—suggest that pressure on household budgets is far from over.
