Education, rent and insurance costs rise as Kenya's inflation hits 7.3 per cent in October

The cost of education, accommodation and insurance services in Kenya has increased over the past year, adding to the financial pressure on households already struggling with the rising cost of living.

The latest Consumer Price Index (CPI) and Inflation Report released by the Kenya National Bureau of Statistics (KNBS) on October 30, 2026, shows that education services recorded a 3.1 per cent increase in prices between October 2025 and October 2026. Restaurants and accommodation services registered a 3.0 per cent increase, while insurance and financial services became 1.1 per cent more expensive over the same period.

The increases come as Kenya's annual inflation rate accelerated to 7.3 per cent in October 2026, meaning the overall cost of goods and services was 7.3 per cent higher than a year earlier.

KNBS reported no monthly price increase in education services between September and October 2026, but the annual comparison shows that households are paying more than they did last year. Education services account for 5.562 per cent of the CPI basket.

The report also identified a 3.6 per cent annual increase in the Recreation, Sport and Culture category, which includes textbooks and other educational materials. Within this category, pre-primary and primary school textbooks increased by 1.1 per cent between September and October 2026, while secondary school textbooks recorded a 0.2 per cent increase.

Accommodation and restaurant-related services registered a 3.0 per cent rise over the 12 months to October 2026. The division accounts for 8.0991 per cent of the CPI basket. Monthly, prices in the division increased by 0.3 per cent between September and October.

KNBS attributed the movement partly to higher food and beverage prices in hotels and restaurants. Food purchased from vendors increased by 0.3 per cent, while prepared foods in hotels and restaurants became 0.4 per cent more expensive. Hotel and restaurant beverages recorded the highest monthly increase within the division, at 0.7 per cent.

Insurance and financial services registered a 1.1 per cent annual increase. The category contributes 2.2423 per cent to the overall CPI basket. KNBS reported no monthly price movement between September and October 2026.

Transport and food continued to exert the greatest pressure on the cost of living. According to KNBS, transport prices increased by 17.1 per cent over the 12 months to October 2026, making it one of the largest contributors to annual inflation. Food and non-alcoholic beverages recorded a 10.2 per cent increase, while housing, water, electricity, gas and other fuels became 3.7 per cent more expensive.

KNBS attributed the overall rise in consumer prices primarily to food, transport and housing-related expenditure. Together, these three broad categories account for more than 57 per cent of the combined weight of the 13 major expenditure divisions used in calculating inflation.

The monthly CPI increased from 156.47 in September to 157.60 in October 2026, a 0.7 per cent rise. Core inflation stood at 4.3 per cent, while non-core inflation reached 15.1 per cent.