Kenya’s inflation rises to 4.1% in April
Kenya's annual inflation rate surged to an eight-month high of 4.1% in April 2025, primarily fueled by escalating food prices due to shortages of staples. The Central Bank governor warns of further increases if supply issues are not resolved.
Recent economic data released for April 2025 revealed a concerning uptick in Kenya’s annual inflation rate, which climbed to 4.1%. This figure represents the highest level of inflation experienced in the country over the preceding eight months, signaling potential headwinds for consumers and policymakers alike.
The primary driver behind this inflationary pressure was a significant surge in food prices. Widespread shortages of essential staples such as maize, potatoes, and various vegetables exerted considerable upward pressure on overall costs, directly impacting household budgets across the nation. These shortages are attributed to a combination of factors, including adverse weather conditions affecting harvests and supply chain disruptions.
In response to these developments, Central Bank Governor Kamau Thugge issued a cautious outlook. He warned that should the existing supply constraints for key food items persist through the coming months, the inflation rate could continue its ascent, potentially approaching the upper limit of the Central Bank's policy range, which stands at 7.5%, by the third quarter of the year. Such a scenario would necessitate careful monetary policy considerations to maintain price stability.