The annual inflation rate in Kenya rose to 6.6% in August 2026 from 6.5% in July, staying above the midpoint of the central bank's 2.5%-7.5% target range for a fifth consecutive month. Transportation (15.7% vs 15.6%) was the main source of inflationary pressure, as renewed geopolitical tensions in the Middle East drove oil prices higher. Moreover, food inflation remained elevated (at 9%) while prices picked up for housign & utilities (3.6% vs 3.2%). Meanwhile, the core inflation rate, which excludes selected volatile items, quickened to 3.4% from 3.2% in July, highlighting second round effects from higherl fuel costs. On a monthly basis, the CPI rose by 0.4% in August, after a 0.2% increase in the prior month.