Kenya’s Inflation Eases to 4.4% in January as Costs of Transport, Food and Internet Fall

Kenya, 30 January 2026 - Kenya’s annual inflation rate moderated to 4.4 percent in January 2026, down from 4.5 percent in December 2025, as continued declines in key cost drivers such as transportation, food and internet services eased price pressures for households and businesses, according to the Kenya National Bureau of Statistics (KNBS).

This latest reading underscores sustained macroeconomic stability six months into the new year and follows a broader trend of inflation remaining comfortably within the Central Bank of Kenya’s (CBK) target range of 2.5 – 7.5 percent.

Lower transportation costs were a major contributor to the slowdown, with inter-town bus and matatu fares falling 1.9 percent, supported by modest price drops in petrol (-1.1 percent) and diesel (-0.6 percent).

At the same time, information and communication costs, including mobile handsets and television sets, eased, while internet fees declined slightly, pulling down the overall inflation figure.

On the food front, declines in the prices of staples such as sugar (-3.0 percent), mangoes (-3.2 percent), and cooking oil (-0.1 percent) helped mitigate rising costs in other food categories. However, not all food prices fell; staple items like cabbage (up 9.3 percent), fortified maize flour (up 6.7 percent) and Irish potatoes (up 3.4 percent) registered increases, reflecting ongoing supply dynamics in key agricultural markets.

Kenya’s inflation has been relatively stable in recent months, staying below the midpoint of the CBK’s target range and signalling subdued price pressures.

Throughout much of 2025, annual inflation hovered around 4.5 percent, supported by relatively contained food and transport inflation that helped counteract occasional upward pressures from energy and housing costs.

Economists say the moderation in headline inflation benefits consumers by preserving purchasing power and supporting household budgets, particularly for low- and middle-income families who spend a larger share of income on food, transport and communication.

Lower transport and fuel costs also help ease the cost base for many businesses, particularly those in trade, logistics and services.

Some analysts also point to structural support from monetary policy easing in 2025, where the CBK progressively reduced the Central Bank Rate (CBR) to stimulate lending and bolster economic activity while keeping inflation expectations anchored.