BUSINESS

KNBS: Inflation Drops Slightly to 4.4pc as Fuel Prices Fall

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Person operating a fuel pump. PHOTO/Pexels
Person operating a fuel pump. PHOTO/Pexels
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Kenya’s inflation rate eased slightly in January, helped by cheaper transport, some food items and lower communication costs.

New data from the Kenya National Bureau of Statistics (KNBS) shows inflation fell to 4.4 per cent in January, down from 4.5 per cent in December 2025.

KNBS said the drop was mainly driven by a decline in inter-town bus and matatu fares, which fell by 1.9 per cent. This was supported by lower fuel prices, with petrol dropping by 1.1 per cent and diesel by 0.6 per cent over the same period.

Information and communication costs also went down, with prices of mobile handsets, both basic and smartphones, falling by 0.3 per cent. Television prices also dropped by 0.3 per cent, while internet costs declined by 0.2 per cent.

“In addition, television subscription fees such as DStv fell by 0.1 per cent. In contrast, the price of computers (laptops) increased slightly by 0.2 per cent over the period,” KNBS said.

Lower inflation was also supported by falling prices of some food items. KNBS said sugar, mangoes and cooking oil (salad) declined by 3.0 per cent, 3.2 percent and 0.1 per cent, respectively.

However, other common food items became more expensive during the month. KNBS data shows prices of cabbages rose by 9.3 per cent, fortified maize flour by 6.7 per cent, kale (sukuma wiki) by 4.0 per cent, while Irish potatoes increased by 3.4 per cent.

Electricity costs also went up between December 2025 and January 2026. KNBS said electricity prices increased by 3.7 per cent for 50 kilowatt-hours (kWh) and 3.4 per cent for 200 kWh. In contrast, the price of kerosene dropped slightly by 0.6 per cent.

In the health sector, KNBS reported mixed price movements. Prices of cancer medicines, spectacles and contact lenses, and X-rays and scans declined by 2 per cent, 0.6 per cent and 0.2 per cent, respectively. However, diabetes medicines and laboratory tests each increased by 0.9 per cent.

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