Kenya’s inflation rate held steady at 4.5% in December 2025, even as the prices of basic food items such as unga and sugar continued to climb.
Figures released by the Kenya National Bureau of Statistics (KNBS), alongside the Central Bank of Kenya (CBK), showed that inflation remained within the CBK’s target range, signalling relative price stability at the close of the year. The data, published on January 1, 2026, detailed the key factors influencing consumer prices during the final month of 2025.
According to KNBS, the Consumer Price Index (CPI) for December indicated mixed movements across household expenses, with notable increases in several food and non-food items, while others recorded price declines.
“Annual consumer price inflation as measured by the Consumer Price Index (CPI) stood at 4.5% in December 2025,” KNBS said in its statement.
The bureau noted that food items were the biggest drivers of inflation over the year, particularly fresh produce. Tomatoes recorded the sharpest increase, with prices rising by 30.3% compared to December 2024. Sukuma wiki followed closely at 23.4%, while mango prices increased by 23.1%.
Other commonly consumed staples also became more expensive over the year. Irish potatoes rose by 8.3%, sugar by 12.5%, loose maize grain by 12.6%, and maize flour by 13.2%, adding pressure to household food budgets. Tomatoes emerged as the single largest contributor to food inflation during the period.
KNBS further reported that the marginal rise in the cost of cooking oil, which increased by 0.1%, also played a role, albeit a minor one.
“The increase in inflation was largely driven by higher prices of items in the food and non-alcoholic beverages category, which rose by 7.8%, transport at 5.2%, and housing, water, gas and other fuels, which increased by 1.6% over the year,” the bureau explained.
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Transport costs, in particular, weighed heavily on consumers. In December 2025 alone, the bus fare from Dandora in Nairobi to Luanda in Vihiga County rose sharply from KSh 1,500 to KSh 2,000, marking the steepest monthly increase recorded for any commodity during that period.
Despite these increases, some items provided relief to households. Between December 2024 and December 2025, the price of fresh packaged cow milk declined by 1.3%, while electricity costs fell by 3.7%, helping to cushion consumers against sharper inflationary pressures.
Data from the Central Bank of Kenya also showed reductions in the prices of several basic goods. Cooking oil (salad) dropped by 0.9%, non-aromatic white rice by 0.7%, and white bread by 0.1%.
Analysts attributed the sustained low inflation rate to a strengthening Kenyan shilling and the CBK’s decision to ease interest rates. As a result, inflation has remained below the 5% mark since July 2025.
Meanwhile, a separate survey released by Infotrak on Tuesday, December 30, 2025, highlighted the financial challenges Kenyans faced throughout the year. The study, which involved interviews with 1,000 respondents nationwide, identified unemployment as the most pressing concern, cited by 26% of participants.
High food prices ranked a close second, with 25% of respondents naming the rising cost of food as a major contributor to household financial strain. Education expenses also emerged as a growing burden, as parents struggled to keep up with school fees following the introduction of a new funding model.
