Kenya’s Inflation Hits 6.9% In The Wake Of Higher Fuel Prices

Kenya’s inflation rate for October edged up in the wake of higher fuel prices that have hit above 200 shillings per liter for the first time in history.

The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 6.9 percent, in October 2023. During the reference month, all sectors continued to show price rises.

Prices of commodities under Transport (13.6%); Housing, Water, Electricity, Gas and other fuels (7.8%); and Food and Non-alcoholic Beverages (7.8%) between October 2022 and October 2023.

These three divisions account for over 57 percent of the weights of the 13 broad categories. The CPI and inflation are generated from data collected through monthly surveys of retail prices that target a representative basket of household consumption goods and services.

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The data collection is conducted in the second and third weeks of the month from a sample of outlets located in 50 data collection zones across the country.

Food and Non-Alcoholic Beverages Index increased by 1.3 percent between September 2023 and October 2023. This food inflation was mainly attributed to increased prices of some food items, which outweighed the decrease in prices of other foodstuffs.

Prices of potatoes, tomatoes, and oranges increased by 9.6, 5.4, and 2.8 percent, respectively. During the same period, however, prices of maize flour-sifted, fortified maize flour, and wheat flour-white decreased by 4.1, 3.2, and 0.8 percent, respectively.

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The Housing, Water, Electricity, Gas, and Other Fuels Index increased by 1.9 percent between September 2023 and October 2023. This was mainly due to an increase in the prices of gas, electricity of 200 kWh, 50 kWh, and kerosene by 7.3, 5.0, 3.3, and 1.2 percent, respectively, between September 2023 and October 2023.

The Transport Index increased by 1.5 percent between September 2023 and October 2023. The sector increase was mainly attributed to a rise in petrol and diesel prices by 2.7 percent and 2.2 percent, respectively.

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