Inflation in Kenya dropped to 4.3% year-on-year in July, down from 4.6% in June, according to the Kenya National Bureau of Statistics. This four-year low was driven by a stronger shilling and slight reductions in household costs like electricity and fuel.
Transport costs increased by only 4% in July, a significant decrease from 7.7% the previous month. Food prices also fell by 0.5% between June and July, although some categories saw sharp price hikes.
Despite overall inflation easing, rising costs for items like cooking oil and gas mean that consumers still face financial pressure. The Central Bank may consider a rate cut when the Monetary Policy Committee meets on August 6.
In recent months, Kenyans protested against tax hikes and the high cost of living, leading President William Ruto to withdraw a proposed finance bill. Ruto, who assumed office in September 2022, faces challenges including high inflation, debt, unemployment, and post-COVID stagnation, while balancing lender demands and public discontent.