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Published July 2, 2026businesscementeconomy

Kenyans worse off than last year as cost of living remains elevated

This is despite inflation easing to 6.4% last month from 6.7% in May. A trader sells fresh tomatoes at Harambee Market in Kangemi on May 6, 2026 /Enos Teche KENYAN households continue battling high living cost despite latest official data indicating an ease in inflation for June compared to May.

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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This is despite inflation easing to 6.4% last month from 6.7% in May. A trader sells fresh tomatoes at Harambee Market in Kangemi on May 6, 2026 /Enos Teche KENYAN households continue battling high living cost despite latest official data indicating an ease in inflation for June compared to May.

Kenya National Bureau of Statistics (KNBS) data released on Tuesday evening shows annual inflation slowed to 6.4 per cent in June, down from 6.7 per cent in May. This is supposed to have offered consumers a modest relief after a sharp rise in May. However, stubborn increases in food prices, transport costs and other essential household expenses continued to squeeze family budgets, painting a different picture on the ground.

This is both on progressive months and in comparison to same period in 2025, which shows Kenyans are worse off compared to a year ago. Out of the 13 key indices used to measure inflation, nine recorded an upward trigger, three remained unchanged with only housing, water, electricity, gas and other fuels recording a drop.

Compared to last year, all indices show an increase in commodity and service costs led by transport which has since increased by 16 per cent. Inflation climbed steadily over recent months, driven largely by higher fuel prices and rising food costs. According to KNBS, prices in food and non-alcoholic beverages, transport, and housing, water, electricity, gas and other fuels remained the biggest contributors to inflation.

Together, the three categories account for more than 57 per cent of household expenditure, meaning changes in these costs have the greatest impact on consumers.

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Kenyans worse off than last year as cost of living remains elevated

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Document: The Star Kenya Business · Source: The Star Kenya Business

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