Kenya’s year-on-year consumer inflation rate saw a noticeable increase in April, climbing to 4.1% from the 3.6% recorded in March. On a month-on-month basis, consumer prices also rose by 0.3%, indicating a renewed, albeit moderate, upward pressure on the cost of living. This recent rise follows a period of steady post-pandemic increases in the inflation rate, which stood at 2.7% in October 2024. Despite the uptick, the current inflation level remains comfortably within the Central Bank of Kenya’s (CBK) target band of 2.5% to 7.5%.

The release of this inflation data came shortly after the CBK surprised financial markets by implementing a 75 basis points cut to its benchmark policy rate earlier in April, bringing it down to 10.0%. This aggressive monetary easing was aimed at stimulating bank lending to the private sector and thereby supporting broader economic growth. CBK policymakers will be watching the inflation trajectory very closely in the coming months, as the falling policy rate and a relatively stable Kenyan shilling have provided the necessary room for such monetary easing measures throughout the year. The sustainability of this easing stance will depend on inflation remaining well-anchored within the target range.