Kenya’s inflation rate fell to 3.8% year-on-year in May 2025 from 4.1% in April, the Kenya National Bureau of Statistics (KNBS) reported on Friday.
On a month-on-month basis, inflation rose by 0.5% in May, up from 0.3% in April.
The increase in prices was mainly driven by a 6.3% rise in the food and non-alcoholic beverages index and a 2.3% increase in the transport index compared to May 2024.
Housing, water, electricity, gas, and other fuels also contributed with a 0.8% rise over the same period.
Kenya’s inflation remains comfortably within the Central Bank of Kenya’s target range of 2.5% to 7.5%.
The central bank is scheduled to announce its next lending rate decision on June 10.
In April, the bank surprised markets by cutting its policy interest rate for the fifth consecutive time to 10.0%, aiming to further stimulate private sector lending and economic activity.