NAIROBI, Kenya, June 17 – Kenya’s inflationary pressures are expected to remain elevated over the next three months, with fuel and energy costs continuing to drive prices higher, according to the latest Central Bank of Kenya (CBK) Market Perceptions Survey.
The survey, which sampled banks and private sector players, identified rising fuel and energy prices as the primary source of inflationary pressure.
“Rising fuel costs have increased transport, electricity, production and distribution expenses, exerting upward pressure on domestic prices,” the report stated.
Respondents linked the increase in fuel costs to disruptions in global oil supply chains following tensions involving Iran, Israel and the United States, which affected shipping through the Strait of Hormuz, a key route for global oil and gas trade.
Fuel prices in Kenya have risen sharply in recent months. A litre of super petrol now costs about Sh214.03, up from roughly Sh176 before the conflict, while diesel prices have climbed to Sh222.86 per litre from about Sh150.
Survey participants also cited heightened geopolitical tensions in the Middle East as a factor contributing to higher freight and logistics costs, further increasing domestic prices.
In addition, 12 percent of respondents said the heavy rains and flooding experienced in May and June had added pressure on inflation by disrupting supply chains and agricultural activities.
“In July 2026, respondents expect inflation to remain slightly above 5 percent, reflecting the lagged effects of elevated global energy prices,” the report noted.
However, respondents expect inflationary pressures to ease gradually in the coming months as improved agricultural harvests, supported by favourable weather conditions and the harvesting season, help lower food prices.
They also expressed optimism that a de-escalation of tensions in the Middle East could reduce global oil prices and ease imported inflation.
“In addition, they expect the Central Bank’s monetary policy stance to support exchange rate stability and anchor inflation expectations,” the survey added.
