HomeBusinessKenya Inflation Hits 7.3% as Food and Fuel Prices Rise

Kenya Inflation Hits 7.3% as Food and Fuel Prices Rise

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Kenya’s annual inflation rate increased to 7.3 per cent in October 2026, up from 6.8 per cent in September, driven by rising food and transport costs, according to the latest data from the Kenya National Bureau of Statistics (KNBS).

The increase signals mounting pressure on household budgets as essential commodities and fuel continue to become more expensive.

KNBS data shows that transport costs rose by 17.1 per cent over the past year, while prices of food and non-alcoholic beverages increased by 10.2 per cent.

On a month-on-month basis, inflation stood at 0.7 per cent, with petrol prices increasing by 6 per cent, diesel by 4.4 per cent and kerosene recording a significant 14.7 per cent rise.

The price of a 500ml packet of milk increased to KSh64.13 from KSh61.23, while a kilogramme of cabbage rose to KSh82.38 from KSh79.16.

The latest figures highlight the continued cost-of-living challenges facing Kenyans, with higher food and energy prices putting additional pressure on consumers.

Kenya is set to intensify efforts to attract more European tourists as it prepares to lead more than 45 tourism partners to the World Travel Market (WTM) London scheduled for November 3–5, 2026.

The Kenya Tourism Board (KTB) says the participation will focus on strengthening European market partnerships, attracting new visitors and increasing investment in the country’s tourism sector.

Europe remains a key source market for Kenya, contributing more than 600,000 visitors in 2025, including over 170,000 tourists from the United Kingdom.

During the exhibition, Kenya will showcase its diverse tourism attractions, including wildlife safaris, coastal destinations, cultural experiences, sports tourism and business travel.

The delegation will also pursue stronger partnerships with international airlines and tour operators to improve connectivity and increase visitor bookings.

Kenya recorded approximately 2.7 million international visitors and generated KSh500 billion in tourism earnings last year.

KTB Chief Executive Officer June Chepkemei said the delegation’s objective was to convert growing international interest in Kenya into actual bookings, investments and employment opportunities.

Water sector stakeholders are calling for increased private sector investment in infrastructure, warning that low tariffs and heavy government subsidies are undermining the industry’s ability to secure sustainable long-term financing.

Speaking during the 10th Innovate-for-WASH Marketplace Forum in Nairobi, PwC adviser Isaac Otolo said the sector requires long-term debt and equity financing to support infrastructure development despite the availability of capital in global markets.

Otolo called on consumers and policymakers to reconsider how water services are priced, arguing that tariffs should reflect the actual cost of providing the service.

He noted that cost-reflective tariffs would help water service providers generate sufficient revenue to maintain infrastructure, attract investment and guarantee reliable water supplies.

The stakeholders maintain that without sustainable financing models, the sector could struggle to expand access to clean and reliable water amid growing demand.

CFAO Mobility Kenya has unveiled the ninth-generation Toyota Hilux, with prices starting at KSh7.87 million for the Mid specification and KSh10.84 million for the High specification.

The new pickup features a locally assembled 2.8-litre turbo diesel engine capable of producing 150kW of power and 500Nm of torque, with a reported fuel efficiency of 12 kilometres per litre.

CFAO Mobility Kenya Managing Director Arvinder Reel said the latest model had been adapted to suit Kenyan driving conditions while delivering improved performance, comfort and technology.

The launch comes amid growing demand for pickup trucks in the Kenyan market, with sales increasing by 52.6 per cent to 2,949 units between January and August 2026.

The new Hilux is expected to strengthen Toyota’s presence in the competitive pickup segment, which continues to attract buyers in the commercial, agricultural and personal transport sectors.

Airtel Africa has reported a 20.5 per cent increase in half-year profit to $452 million (approximately KSh58.4 billion), supported by strong growth in data consumption and mobile money services.

The telecommunications group’s revenue for the six months ended September 2026 increased by 28.2 per cent to $3.82 billion.

Data revenue grew by 28 per cent to $1.57 billion, while mobile money revenue increased by 25.8 per cent to $840 million in constant currency.

The company’s customer base also expanded by 11.6 per cent to 193.9 million, reflecting increased demand for telecommunications and digital financial services across its markets.

Mobile money customers rose to 60.9 million, further strengthening Airtel’s position in Africa’s rapidly expanding digital payments sector.

Chief Executive Officer Sunil Taldar said the company would accelerate investments in its network infrastructure to expand capacity and improve service quality as demand for digital services continues to grow.

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