Kenya Inflation Accelerates to Two-Year High as Fuel Costs Drive Price Pressures

Kenya’s cost of living has surged to a near two-and-a-half-year high, putting intense pressure on the Central Bank ahead of its upcoming policy meeting. According to the latest data released today by the Kenya National Bureau of Statistics (KNBS), headline inflation accelerated to 6.7% in May, driven by an aggressive 16.5% spike in transport costs and climbing food prices. The sharp upturn marks the fastest pace of price increases since January 2024, signaling a tight squeeze on consumer wallets and raising the likelihood of a hawkish interest rate hike to mop up market liquidity.