The inflation rate in Kenya has climbed to 4.1% in April 2025, rising from 3.6% recorded in March. This is according to new data released by the Kenya National Bureau of Statistics (KNBS). The April figure marks the highest inflation rate the country has seen in the past eight months. The last time the rate was this high was in August 2024, with the lowest point being 2.7% in October of the same year.
The rise in inflation is largely blamed on increasing prices of basic food items and utility services. According to KNBS, food and non-alcoholic beverages saw a year-on-year price increase of 7.1%. Among the food items that witnessed significant price hikes were potatoes, which went up by 4.0%, maize by 2.9%, fortified maize flour by 2.6%, and sugar by 0.7%. Beef prices also rose slightly by 0.3%, while tomatoes went up by 1.2%.
However, not all food prices moved in the same direction. Prices of wheat flour and some green vegetables dropped. Wheat flour declined by 2.2%, spinach by 2.3%, kale by 2.3%, and cabbage had the highest drop at 4.0%.
Apart from food, utilities also recorded a price increase. The cost of 50 kilowatt-hours of electricity went up by 3.8% in April. Kenyans also had to pay slightly more for cooking gas, as the cost of refilling a 13-kilogram gas cylinder increased by 0.3%. These changes added more pressure to the cost of living for many households across the country.
Despite the inflation rise, the figure is still within the Central Bank of Kenya’s (CBK) acceptable range of between 2.5% and 7.5%. The CBK, led by Governor Kamau Thugge, responded to the economic situation by cutting the policy interest rate to 10.0% earlier this month. This is the fifth consecutive rate cut by the bank, and the aim is to encourage more lending to the private sector in order to boost business activities.
The Central Bank hopes that lower interest rates will make it easier for individuals and companies to borrow money and invest, which in turn could support economic growth. However, there are concerns that the rising cost of essential goods may still make it difficult for many ordinary citizens to manage their daily expenses.
The new inflation data paints a clear picture of the economic challenges facing Kenya, especially as the country continues to recover from global economic shocks and local supply issues. Many Kenyan households are adjusting their budgets as they deal with higher food and utility costs. Economists are watching closely to see if inflation will continue to rise in the coming months or if policy measures by the Central Bank will help stabilize the economy.
