Kenya’s annual inflation rate climbed to a three-year high of 7.3% in October 2026, up from 6.8% in September, as rising food, fuel and transport costs put renewed pressure on household budgets.
Data from the Kenya National Bureau of Statistics (KNBS) shows that food and non-alcoholic beverage prices rose by 10.2% over the year, while transport costs increased by 17.1%. Housing, water, electricity, gas and other fuel costs were up 3.7%.
Fuel was a major contributor. Petrol prices increased by 22.8% year-on-year, diesel by 32.5% and kerosene by 41.6%. EPRA’s October 2026 review also raised Nairobi pump prices by KSh12.93 per litre for petrol, KSh9.90 for diesel and KSh28.49 for kerosene.
The increase comes against a backdrop of already elevated fuel prices. In October 2023, EPRA set Nairobi pump prices at KSh217.36 per litre for petrol, KSh205.47 for diesel and KSh205.06 for kerosene. By the October 2026 pricing cycle, the respective prices had risen to KSh226.96, KSh227.76 and KSh219.85.
Higher fuel costs feed into the wider economy by raising transport, farming, manufacturing and distribution expenses, which can eventually be passed on to consumers through more expensive goods and services.
Food prices added to the pressure, with beef, beans, cabbages, Irish potatoes, oranges and cooking oil among the commodities recording increases.
The latest reading points to the cost-of-living challenge for households and raises the importance of monitoring food and energy prices, which remain key drivers of inflation.