Kenya’s inflation rate has increased to 3.5% in February 2025, marking a rise from previous months. Efforts to maintain rates below 5% have been somewhat successful since June 2024 after an all-time high of 9.2% in 2023. The central bank has lowered interest rates to stimulate lending, addressing the challenges posed by fluctuating food and fuel prices.
Kenya’s inflation rate has been steadily rising since October 2024, increasing to 3.5% in February 2025 from 3.3% in January. This ongoing upward trend began in November of the previous year, despite the country’s efforts to maintain inflation below the 5% target that was successfully achieved since June after an all-time high of 9.2% in 2023.
Inflation figures from the Kenyan National Bureau of Statistics reveal fluctuations over the past months. A decrease in inflation was observed from 4.4% in August to 3.6% in September, followed by further drops resulting in a consumer price index of 2.7% in October 2024. In November, inflation rose to 2.8%, reaching 3% by December.
In February 2025, the core inflation rate, which excludes energy and volatile food prices, indicated weak demand. Food and non-alcoholic drink prices increased 6.4% from January’s 6.1%, while transport costs remained flat, reflecting stability in gasoline prices. In contrast, housing and fuel prices fell by 0.8% in February, a significant change from the previous month’s -1.6%.
For the fourth consecutive time, Kenya’s central bank cut the main interest rate to 10.75% on February 5, aiming to stimulate lending and foster economic growth. These measures, coupled with a decline in global fuel prices, are expected to alleviate energy costs, benefiting imports of refined petroleum products.
In summary, Kenya is experiencing a gradual increase in inflation, with recent rates reaching 3.5% in February 2025. While inflation has generally remained below the 5% mark since June 2024, ongoing vigilance and monetary policy adjustments, including interest rate cuts by the central bank, aim to manage inflation and bolster economic activity. The trend of fluctuating inflation underscores the complexities facing the Kenyan economy amidst global and domestic challenges.
Original Source: africa.businessinsider.com
