Inflation Rate Drops to 6.4% in June on Lower Fuel, Electricity Prices

The annual inflation rate in Kenya eased to 6.4% in June 2026 from 6.7% in the prior month, which was the steepest since January 2024. This marked the first slowdown in overall inflation since February 2026, amid softer increases in prices of transportation (16.1% vs 16.5% in May) and food (8.6% vs 9.4%). A slight drop in the price of fuel, for the June-July cycle, has filtered into the economy, slowing down inflationary pressure.

On a monthly basis, the CPI went up by 0.3%, down from a 1.6% advance in May 2026.

Figures from the Kenya National Bureau of Statistics(KNBS) shows that between May 2026 and June 2026, petrol prices decreased by 0.1% per cent. Diesel recorded the highest decrease at 6.3 per cent during the reference period. The price of a litre of Diesel in Nairobi declined from KSh 232.86 to KSh 222.86 while the price of Petrol per litre in Nairobi reduced slightly from KSh 214.25 to KSh 214.03.

The average price of 50 kWh of electricity declined by 1.2% between May 2026 and June 2026. Similarly, the average price of 200 kWh of electricity decreased by 1.1 percent over the same period.

Price of Tomatoes (1 Kg) fell from KSh 120.75 to KSh 117.87, while that of Beans (1 Kg) eased slightly from KSh 181.83 to KSh 180.91. The price of Potatoes/Irish (1 Kg) remained stable, declining marginally from KSh 111.16 to KSh 7 111.10.

Inflation drivers in June

Other June inflation drivers included a spike in the price of Maize Flour – Sifted (2 Kg) rose from KSh 159.12 to KSh 159.78, that of Sugar (1 Kg) increased from KSh 165.66 to KSh 166.62, that for Fresh unpacketed cow milk (1 Litre) went up from KSh 72.72 to KSh 73.19, and Maize Grain – Loose (1 Kg) rose from KSh 71.69 to KSh 72.52.

Additionally, inflation in June was triggered by the the price of Cabbages (1 Kg), which increased from KSh 72.61 to KSh 73.19 and that of Kale-Sukuma wiki (1Kg) increased from KSh 110.07 to KSh 114.44. The price of Cooking Oil/Salad (1Litre) also went up from KSh 355.79 to KSh 358.63.

Between May and June 2026, June inflation eased due to a drop of 1.2% in the price of brown wheat flour, beans prices which fell 0.5%, and beef with bones prices which edged down slightly by 0.1%. On the other hand, spinach increased by 3.1%, and kale (sukuma wiki) recorded the highest rise at 4.0%.

Prices of beer (lagers and stouts) recorded a marginal price increase of 0.1%. Over this period, price of Miraa (khat) on the other hand saw a rise of 1.7%.

Core inflation decreased to 3.1 per cent in June 2026. Core inflation is a measure of inflation that is compiled from non-volatile commodities such as manufactured food items, health services, education services, and ICT.

According to a forecast and global macro models and analysts at Trading Economics, inflation Rate in Kenya is expected to be 7.40% by the end of this quarter. In the long-term, the Kenya Inflation Rate is projected to trend around 4.60% in 2027 and 4.20% in 2028, according to trading economics econometric models.