Domestic Airfares, Matatu Costs Rise as Kenya’s Inflation Accelerates

The cost of domestic travel in Kenya increased in August, with local airfares and inter-town bus and matatu fares rising despite a decline in diesel prices, adding to pressure on household budgets.

Data from the Kenya National Bureau of Statistics (KNBS) shows that return airfares on the Nairobi-Mombasa route rose by 1.5 per cent between July and August, reaching an average of KSh27,000 from KSh26,600 in July.

Over the same period, fares charged by country buses and matatus for inter-town journeys increased by 2.1 per cent.

Transport costs recorded an annual inflation rate of 15.7 per cent in August, compared with the same month last year.

“Between July and August 2026, diesel prices declined by 2.2 percent,” KNBS Director General Macdonald Obudho said. “In contrast, transport-related services became more expensive over the same period.”

The transport division recorded a 0.7 per cent month-on-month increase, making it the biggest contributor to Kenya’s annual inflation rate.

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The rise in transport costs contributed to an increase in headline inflation, which climbed to 6.6 per cent in August from 6.5 per cent in July. Meanwhile, the Consumer Price Index (CPI) increased by 0.4 per cent during the month, rising from 155.20 in July to 155.85 in August.

Food Prices Remain Under Pressure

Food and non-alcoholic beverages recorded annual inflation of 9.0 per cent in August.

Prices of some staple foods declined during the month, with sifted maize flour falling by 2.7 per cent and tomatoes by 2.2 per cent. However, these reductions were outweighed by increases in other fresh produce, including sukuma wiki, whose price rose by 4.3 per cent, and Irish potatoes, which increased by 4.1 per cent.

Housing and Energy Costs Edge Higher

Housing, water, electricity, gas and other fuel costs increased by 0.1 per cent month-on-month and 3.6 per cent year-on-year.

The price of a 13-kilogramme LPG cooking gas cylinder fell marginally by 0.2 per cent, while electricity tariffs increased by 0.2 per cent.

Mobile Money and Leisure Costs Rise

Consumers also faced higher charges for financial and recreational services during the month.

Mobile money transfer fees increased by 1.5 per cent, while entrance charges to game parks, museums and historical sites rose sharply by 5.5 per cent.