Kenya’s inflation rate climbed to 4.1 per cent in April 2025, up from 3.6 per cent in March, according to the Kenya National Bureau of Statistics (KNBS).

“The overall year-on-year inflation rate, as measured by the CPI, was 4.1 per cent in April 2025,” the report, released on Monday, June 30, 2025 stated.

This increase, as measured by the Consumer Price Index (CPI), reflects rising costs across various sectors. The CPI, which tracks the average price of goods and services, rose slightly from 143.69 in March to 144.09 in April.

The uptick in inflation was driven by higher prices for some essential goods. For instance, the average retail price of dry maize increased from Ksh55.7 per kilogram in March to Ksh58.0 in April.

However, the price of dry beans saw a slight dip, falling from Ksh151.6 to Ksh151.1 per kilogram. Fuel prices also contributed to the cost-of-living pressures, with motor gasoline priced at Ksh175.30 per litre, light diesel oil at Ksh165.64, and kerosene at Ksh149.78 in April.

On the economic front, the Kenyan shilling weakened against most major currencies, except the South African Rand and Tanzanian Shilling.

The Central Bank of Kenya cut its benchmark interest rate from 10.75 per cent to 10.0 per cent, while the average lending rate for commercial bank loans dropped marginally from 15.77 per cent to 15.65 per cent.

The Nairobi Securities Exchange (NSE) 20 Share Index also fell from 2,227 points to 2,136 points, reflecting a cautious mood in the stock market.

Agricultural exports drive economic growth

In agriculture, coffee and tea exports showed growth. Coffee exports rose from 6,936.99 metric tonnes in March to 7,950.86 in April, with their value increasing from Ksh6.9 billion to Ksh7.8 billion.

Tea exports also grew, from 50,989.32 metric tonnes to 54,874.35, with a value increase from Ksh14.9 billion to Ksh16.1 billion.

However, production challenges persisted, with tea production dropping from 44.6 thousand metric tonnes in February to 37.9 in March, and cane deliveries falling sharply from 715.5 thousand metric tonnes in March to 398.9 in April.

International trade saw a boost, with total trade value rising from Ksh310.4 billion in March to Ksh333.0 billion in April. Exports increased to Ksh98.4 billion, while imports grew to Ksh234.6 billion.

Uganda, the United Arab Emirates, and Pakistan remained Kenya’s top export destinations, with food and beverages making up 44.3 per cent of exports.

In the energy sector, electricity generation dipped slightly from 1,116.3 million kWh in March to 1,074.1 million in April, with geothermal and hydro sources leading production.

Meanwhile, the construction sector saw a significant decline in the value of approved building plans in Nairobi, dropping from Ksh34.6 billion to Ksh10.2 billion.

Despite these challenges, tourism showed resilience, with visitor arrivals slightly up from 168,563 in March to 169,230 in April, driven by a 4.7 per cent increase at Jomo Kenyatta International Airport.

The KNBS report highlights a mixed economic picture for Kenya, with rising inflation and costs in some areas offset by growth in trade and tourism. The government and policymakers may need to address these pressures to ensure economic stability in the coming months.