Goods and Services Prices Rise as 2026 Begins

Inflation Report Released
Kenya National Bureau of Statistics (KNBS) reported annual inflation at 4.5 percent in December 2025. Moreover, the report highlighted rising costs of everyday goods and services across households.

Food Costs Surge
Food prices rose 7.8 percent over the year, hitting families hardest. Additionally, sukuma wiki increased 4.7 percent, maize flour 5.1 percent, and potatoes 2.9 percent.

Transport Fares Increase
Transport costs surged during the festive season. Inter-town matatu fares rose 5.3 percent, while international flights jumped 14.4 percent due to high demand.

Housing and Energy Trends
Gas prices increased slightly by 0.4 percent. However, electricity costs dropped, with 50 kWh and 200 kWh charges falling 2.8 and 2.6 percent respectively.

Alcohol and Tobacco Prices
Hard drinks and tobacco rose 2.8 percent. Meanwhile, miraa prices declined marginally by 0.1 percent, offering slight relief.

Clothing and Household Items
Women’s dresses rose 0.7 percent, while boys’ sports shoes fell 0.3 percent. Laundry soap eased slightly, but domestic worker wages increased marginally.

Health and Recreation Costs
Health services rose 2.6 percent, including medicines and consultations. Recreation and culture costs increased 2.9 percent, with electronics showing minor monthly changes.

Education and Accommodation
School textbooks rose 0.5 percent, while education services increased 2.2 percent. Furthermore, hotel food and lodging pushed accommodation costs up 2.1 percent.

Relief from Price Drops
Sugar prices fell 1.5 percent to Ksh179.60 per kilogram. Additionally, mangoes dropped 1.6 percent, and electricity costs eased for households.

Overall, food and transport drove inflation higher. Ultimately, falling sugar and electricity prices softened the impact for Kenyan households.