Kenya's Inflation Reaches 4.1% Amid Food Supply Crunch

Kenya's annual inflation rate rose to 4.1% in April 2025, marking its highest level in eight months and reversing a previous trend of declining or stable prices. This surge has been primarily driven by higher costs for food staples such as maize, potatoes, and green vegetables, as well as increased prices for electricity and transportation. While inflation remains within the Central Bank of Kenya's target range of 2.5% to 7.5%, it is edging closer to the 5% midpoint considered optimal for economic stability. Authorities attribute the increase to tight food supplies, volatile weather patterns affecting agriculture, and seasonal factors like holiday-related transport fare hikes. The central bank may contemplate policy adjustments, such as interest rate hikes, if inflationary pressures persist and the rate approaches the upper end of its target. Despite the recent uptick, monthly consumer price growth in April was slightly lower than in March.