Kenyan Households Face Higher Living Costs as Food and Energy Prices Rise

Kenyan households faced higher living costs in January as prices for staple foods, electricity, transport and education continued to rise, according to the latest official inflation data.

Figures from the Kenya National Bureau of Statistics (KNBS) show that food remained the largest driver of inflation. The Food and Non-Alcoholic Beverages category recorded a 7.3 percent annual increase, led by higher prices for maize products and vegetables.

Maize grain prices rose from KSh69.39 per kilogram in December to KSh71.28 in January. Fortified maize flour increased more sharply, with the price of a two-kilogram packet rising from KSh162.56 to KSh173.51.

Vegetable prices also increased during the month. Kale became 4 per cent more expensive, while cabbage prices rose by 9 per cent. Irish potatoes recorded a 3.4 percent increase. Analysts note that any delay in the March–May long rains could further affect crop output and push prices higher.

Energy costs added to household pressures. Electricity tariffs increased by 3.7 percent for consumers using 50 kWh and by 3.4 percent for those using 200 kWh. Kerosene prices declined slightly by 0.6 percent, but overall fuel costs remained elevated. Public transport fares rose by 4.8 percent over the year, despite small month-on-month declines in petrol and diesel prices reported by the Energy and Petroleum Regulatory Authority (EPRA).

Overall inflation remained relatively stable. Annual headline inflation stood at 4.4 percent in January, down slightly from 4.5 per cent in December. However, underlying pressures persisted. Core inflation, which excludes food and fuel, rose to 2.2 percent, reflecting higher prices for manufactured goods, health services, education and information and communication technology.

Non-core inflation, driven mainly by food and energy prices, was significantly higher at 10.3 percent, highlighting continued volatility in these sectors. Education costs also increased. Private secondary school fees rose by 3.1 percent, while pre-primary fees increased by 3.3 percent. Boarding charges at primary, secondary and tertiary institutions recorded modest increases.

Healthcare prices showed mixed movements. Costs for cancer medicines and eye care services declined slightly, while prices for diabetes treatment, laboratory tests and general practitioner consultations increased. As a result, health sector inflation stood at 2.7 percent.

The latest data indicates that while overall inflation remains moderate, higher costs for essential goods and services continue to place pressure on household budgets, particularly for food, energy, education and healthcare.