December inflation rate steadies at 4.5pc despite price hikes

Cosmas Limo, a trader in Eldoret city. [File, Standard]

Kenya’s inflation rate held steady at 4.5 per cent in December 2025, unchanged from November, according to new data from the Kenya National Bureau of Statistics (KNBS).

The stability comes despite price increases in several essential goods and services over the past year.

“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (7.8 per cent); Transport (5.2 per cent), and Housing, Water, Electricity, Gas and other fuels (1.6 per cent) over the 12-month period,” read the latest report.

The statistics agency conducted a nationwide spot check of retail prices in both urban and rural areas during the second and third weeks of December to track changes in the cost of living.

KNBS data shows inflation has generally trended upward since December 2024, when it stood at 3.0 per cent, with declines recorded only in May and November.

During the review period, prices of various commodities went up except housing, water, and energy categories, which dropped marginally, while others such as education, insurance, and financial services, remained the same.

“Electricity price decreased by 2.8 per cent and 2.6 per cent for 50 kWh and 200 kWh, respectively, between November and December 2025. However, the price of gas/LPG rose by 0.4 per cent during the same period,” said KNBS.

Healthcare costs also edged higher, particularly for consultations and chronic disease management. Medicines used to manage cholesterol and blood pressure rose by 0.2 per cent, antibiotics by 1.8 per cent, while general practitioner consultation fees increased by 0.4 per cent, KNBS said.

Food prices were mixed. While the cost of sukuma wiki, maize flour, and potatoes increased, sugar, cooking oil, and mangoes became slightly cheaper. A kilogram of sugar fell from Sh182.37 to Sh179.60, while a kilogram of loose maize grain rose from Sh68.08 to Sh69.39.

Transport costs climbed, with matatu and bus fares rising by 5.3 per cent. Airfares jumped 14.4 per cent, driven by increased travel during the festive season.
Recreation and hospitality costs, including accommodation, also increased during this period.

Consumers paid more for alcohol and tobacco, although miraa users saw marginal relief. “Traditional beer and spirits rose by 5.5 per cent and 0.5 per cent, respectively. Miraa prices decreased by 0.1 per cent,” KNBS noted.

Clothing costs varied, with women paying more for dresses, while the price of men’s sports shoes fell by 0.3 per cent.

Despite the broader cost pressures, wages for gardeners and domestic workers rose by 1.6 per cent and 0.3 per cent, respectively.