The Central Bank of Kenya (CBK) has warned that the cost of living could remain high in the coming months as rising food, fuel and energy prices continue to put pressure on households and businesses.

In its September 2026 Market Perceptions Survey, the central bank said inflationary pressures were likely to remain elevated over the three months to November, driven by higher transport costs, food supply challenges and uncertainty in global markets.

The warning comes after Kenya’s annual inflation rate increased to 6.8 per cent in September, up from 6.6 per cent in August, according to the Kenya National Bureau of Statistics (KNBS).

The increase means the overall price level was 6.8 per cent higher in September 2026 than in the same month last year, putting additional pressure on household budgets.

Why Food and Fuel Prices Could Remain High

According to the CBK survey, rising energy costs are expected to increase expenses related to transport, electricity, production and distribution.

Businesses facing higher operating costs could pass some of the additional expenses on to consumers through higher prices for goods and services.

Food prices also remain a concern, with the central bank pointing to weather-related supply constraints, lower output following the long rains season and distribution challenges.

These factors could limit food availability and keep prices elevated in the short term.

However, improved agricultural production following the short rains could help increase food supplies and ease pressure on prices. Increased storage capacity could also reduce losses and improve distribution.

Inflation Rises as Transport Costs Increase

The latest inflation figures show that food and transport remain among the main sources of pressure on Kenyan consumers.

KNBS reported annual inflation of 9.5 per cent for food and non-alcoholic beverages in September 2026, while transport inflation stood at 15.6 per cent.

Higher fuel prices have added to the pressure. In its October 15 to November 14 pricing review, the Energy and Petroleum Regulatory Authority (EPRA) raised Nairobi’s maximum price of super petrol to KSh226.96 per litre and diesel to KSh227.76 per litre.

Rising fuel costs can affect public transport, deliveries, farming and the movement of goods across the country, potentially increasing expenses for both households and businesses.

What Could Help Bring Prices Down?

Despite the risks, the CBK survey identified several factors that could help moderate inflation.

These include a stable exchange rate, monetary policy measures, improved food production and the possibility of stabilisation in global oil prices.

Better rainfall and increased food supplies could also ease pressure on essential commodities, while adequate foreign exchange reserves may help limit the impact of imported inflation.

Businesses have also called for measures to reduce operating costs, including lower energy and transport expenses, more affordable credit and a predictable tax environment.

The CBK expects inflation to remain within its target range over the medium term, although global commodity prices, geopolitical tensions and weather-related disruptions remain significant risks.

For Kenyan households, the immediate concern is that food, transport and energy expenses could continue consuming a substantial share of monthly income as the economy adjusts to the latest price pressures.