Kenya’s inflation continues to climb again, with the latest data indicating the annual rate reached 4.1% in April 2025, the highest level in eight months.
- Kenya’s inflation reached 4.1% in April 2025, the highest in eight months.
- The surge in inflation is fueled by scarcity of critical food staples like maize, potatoes, and green vegetables.
- The inflation rate is getting closer to the Central Bank of Kenya’s target range of 2.5% to 7.5%.
The surge, fueled by a scarcity of critical food staples such as maize, potatoes, and green vegetables, puts further strain on household finances and poses a problem for authorities attempting to keep inflation under control.
According to figures issued by the Kenya National Bureau of Statistics, April’s inflation reverses the recent trend of relative price stability.
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Kenya’s inflation in the past year
The consumer price index fell as low as 2.7% in October 2024, capping a string of continuous reductions that began with a 4.4% inflation rate in August 2024 and 3.6% in September.
This recent increase in inflation, while still falling within the Central Bank of Kenya’s (CBK) declared goal range of 2.5% to 7.5%, is getting closer to the midpoint of 5%, which the CBK considers best for economic stability.
Governor Kamau Thugge has cautioned that if present pressures continue, inflation might reach the upper end of this goal range by the third quarter of 2025, as seen on Bloomberg.
Kenya has historically struggled with high inflation. Inflation peaked at 9.2% in 2023, the highest in decades.
The government and central bank were able to keep inflation under control by combining monetary tightness with excellent weather conditions that increased food supplies.
From 6.3% in February 2024, a 23-month low, rates fell progressively to 5.7% in March, 5.0% in April and May, and finally to 4.6% in June of the same year.
For several months afterwards, inflation stayed below 5%, indicating a remarkable period of price stability.
However, inflation has been on an increasing trend since January 2025, going from 3.3% that month to 3.5% in February, 3.6% in March, and 4.1% in April.
Food inflation remains the key driver. Kenya’s reliance on rain-fed agriculture implies that irregular weather patterns, along with supply chain interruptions, can quickly result in food shortages and price increases.
As the third quarter approaches, the CBK may have to consider policy changes if inflation exceeds the top limit of the target range. This might involve interest rate rises or budgetary actions to keep prices stable.
