Food, transport costs hurt Kenyans as inflation eases

A trader at Jubilee Market in Kisumu. The prices of basic food items and transport have climbed sharply over the past year. [Rodgers Otiso, Standard]

Across the country, households are confronting a cost-of-living squeeze that shows little sign of easing, even as official inflation figures edged lower in June.

The prices of basic food items and transport which are the two largest components of household budgets, have climbed sharply over the past year, eroding purchasing power and forcing families to make increasingly difficult choices.

Overall inflation eased to 6.4 per cent in June, down from 6.7 per cent the previous month, according to data released on Tuesday by the Kenya National Bureau of Statistics (KNBS). 

On a monthly basis, consumer prices rose by 0.2 per cent, a sharp moderation from the 1.6 per cent increase recorded in May. The slowdown was largely driven by lower fuel and electricity costs, which helped offset persistent food price pressures. 

However, the slight reprieve in the headline figure masks the reality for most households, where food and transport costs remain stubbornly high.

At Naivasha’s main market, traders say customers are now opting to buy foods in smaller quantities. “People used to buy a whole cabbage. Now they ask for a half,” said Mary Wanjiru, a vegetable vendor. “They count every shilling.”

The data from the KNBS confirms what market-goers already know. Over the 12 months to June 2026, the price of sukuma wiki, a staple vegetable in most Kenyan homes, surged by 26.6 per cent to hit Sh114.44 per kilogramme. 

Cabbage prices climbed by 25.3 per cent to Sh73.19 per kilogramme. Tomatoes, despite a slight monthly decline, remain 40.5 per cent higher than a year ago when it was Sh117.87 per kilogramme. Cooking oil rose by 3.3 per cent to Sh358.63 per litre, while sugar, though down from last year’s peak, still costs Sh166.62 per kilogramme.

Transport costs have been even more punishing. Fuel prices remain far above year-earlier levels despite a slight easing in June. Diesel in Nairobi dropped to Sh222.86 per litre in June from Sh232.86 in May, but that was still 29.9 per cent higher than June 2025. 

Petrol edged down marginally to Sh214.03 per litre, up by 14.9 per cent year-on-year.

The impact has cascaded through the economy. City buses and matatu fares surged by 42.9 per cent over the past year, with a single ticket on the Bungoma to Kabula route rising from Sh70 to Sh100, according to KNBS data. 

For commuters across the country, daily travel costs have become a significant drain on already stretched incomes.

“Every time fuel goes up, the matatu fare goes up. It never comes down even when fuel drops,” said James Otieno, a security guard in Naivasha who spends nearly a third of his daily wage on transport to and from work.

The electricity tariff provided one of the few bright spots. The average cost of 200 kilowatt-hours (Kw) declined to Sh5,476 in June, about 4.6 per cent lower than a year earlier, thanks to lower fuel adjustment charges. But the relief in power bills has been offset by rising costs elsewhere.

The squeeze is being felt most acutely by low and middle income households, who spend a larger share of their income on food and transport than wealthier Kenyans. For a family of five, the cost of a basic weekly food basket has risen by more than 20 per cent over the past year they say. 

“The money that used to last a week now barely covers four days,” said Grace Akinyi, a mother of three in Naivasha’s Karagita estate. “We have reduced meals. Sometimes we skip lunch so the children can eat in the evening.”

Small businesses are also feeling the strain. “My customers have less money to spend,” said David Mwangi, who runs a small poultry farm. “I sell less stock, but my feed suppliers are charging me more. It is a double squeeze.”

Analysts say the persistent price pressures reflect a combination of factors including global supply chain disruptions and domestic production challenges that have kept food supplies tight.

Looking ahead, there are few signs of immediate relief. The Kenya Meteorological Department has forecast below-average rainfall in parts of the country, raising concerns about agricultural output in coming months. Global oil prices remain exposed to geopolitical tensions and pent up demand in the Middle East, which could reverse any recent declines in fuel costs.