Kenya’s year-on-year headline inflation rose to 3.0% in December, up from 2.8% in November, according to the latest statistics from the Kenya National Bureau of Statistics (KNBS) released on Tuesday. This means that the general price level in December 2024 was 3.0% higher compared to December 2023, as measured by the Consumer Price Index (CPI).
The increase in inflation was primarily driven by rising prices in two key sectors: Food and Non-Alcoholic Beverages, which saw a 4.8% increase, and Transport, which rose by 0.2%. Despite these increases, prices in other sectors, such as Housing, Water, Electricity, Gas, and Other Fuels, saw a slight decline of 0.2% between December 2023 and December 2024. These three categories—Food, Transport, and Housing—account for over 57% of the weights in the CPI, making their fluctuations significant in the overall inflation rate.
The CPI measures the cost of purchasing a fixed basket of goods and services and indexes the current year’s prices relative to a base period (February 2019). The index itself increased from 140.81 in November to 141.66 in December, reflecting a 0.6% rise over the month.
Food Prices and Transport Fares Drive Inflation
The Food and Non-Alcoholic Beverages Index increased by 0.7% between November and December. Key contributors to this rise were staple items like maize flour, which saw price increases of 7.0% for sifted maize flour, 5.8% for fortified maize flour, and 1.8% for loose maize flour. On the other hand, some food prices fell, with mangoes, Irish potatoes, and cabbages dropping by 6.2%, 5.0%, and 2.8%, respectively.
The Housing, Water, Electricity, Gas, and Other Fuels Index saw a modest increase of 0.2% over the same period, largely due to higher electricity prices, with the cost of 50 kWh and 200 kWh rising by 0.6% and 0.5%, respectively. However, kerosene prices fell by 2.0% during this period.
Transport costs also played a significant role in the December inflation rise. The Transport Index surged by 1.8%, driven primarily by a sharp increase in bus and matatu fares, with some routes seeing fare hikes of up to 50.0%. Despite this, the prices of diesel and petrol fell by 1.8% and 2.4%, respectively, between November and December.
Inflation Trends and Outlook
The year-on-year inflation rate in November was 2.8%, a slight increase from 2.7% in October. The month-to-month inflation rate for December was 0.6%, reflecting higher costs for food, transport, and utilities. The latest inflation figures highlight ongoing pressure on consumer prices, especially in the food and transport sectors, which remain critical for households across Kenya.
