Kenya's annual inflation rate accelerated to 5.6% in April 2026, up from 3.3% in March, according to the Kenya National Bureau of Statistics. This marks the highest level in several months, driven primarily by a sharp increase in global fuel prices that filtered through the economy.
The government had implemented tax cuts, including a reduction in value-added tax (VAT) on fuel from 16% to 8%, in an effort to cushion consumers from the rising costs. However, the impact was limited as international crude oil prices surged past $90 per barrel in April, pushing local pump prices higher.
Transport costs rose by 12.4% year-on-year, while food inflation remained relatively stable at 4.1%. The Central Bank of Kenya has signaled it may tighten monetary policy to prevent inflation from breaching its target range of 2.5% to 7.5%.
Analysts expect inflation to remain elevated in the coming months if global oil prices stay high, but the tax cuts may provide some relief. The government is also considering additional measures to support low-income households.
