Kenya’s inflation rate rose to 4.1 percent year-on-year in April, up from 3.6 percent the previous month, according to an announcement by the statistics office on April 30, 2025. On a monthly basis, inflation was 0.3 percent in April, the Kenya National Bureau of Statistics said in a statement. In response to the economic momentum, the Central Bank of Kenya cut its policy rate to 10.0 percent in April, marking the fifth consecutive cut.
In April 2025, the Central Bank of Kenya cut its policy rate to 10.0%, marking the fifth consecutive annual cut, as inflation reached 4.1%, up from 3.6% in March 2025, according to the Kenya National Bureau of Statistics (KNBS). This increase marks the highest level since September 2024, although inflation remains within the Central Bank of Kenya’s target range of 2.5% to 7.5%.
“The increase in inflation is due to the increase in food prices. I believe that the cost of food inflation has risen to 16 percent. In December, this inflation had fallen by 4.8 percent, and fuel inflation also fell to 16 percent, and I think it is currently at minus 1 percent.”
Kamau Thugge, Governor of the Central Bank – Kenya
This decision is aimed at stimulating lending to the private sector and supporting economic activity. However, forecasts suggest that inflation in Kenya is expected to stabilize around 5.6% in 2025, due to the appreciation of the shilling and improving food prices.
“In the past we observed that if the cost of food and fuel was close to 3 percent or less than 3 percent, general inflation was around what we were covering, which is about 5 percent, so there was really good reason to strengthen monetary policies to reduce the pressure on non-oil and non-food products.”
Kamau Thugge, Governor of the Central Bank – Kenya
The rise in inflation in April is mainly due to price increases in several key sectors, including food, transport, housing, water, electricity, and gas, according to experts. Kenyan financial experts point out that this inflation will have a direct impact on Kenyan consumers. The result will be a rising cost of living, increased transport costs, and higher energy bills.
