Kenya’s inflation fell to 3.8 per cent year-on-year in May from 4.1 per cent a month earlier, the statistics office said on Friday.

This puts the inflation rate well within the target range of 2.5 per cent to 7.5 per cent set by the country’s central bank. In terms of month-on-month inflation, the rate increased slightly to 0.5 per cent in May, up from 0.3 per cent in the month prior, as reported by the Kenya National Bureau of Statistics.

The office also noted an increase in the food and non-alcoholic beverages index. This index saw a rise of 6.3 per cent when compared with the same month in 2024. The transport index also experienced an increase, growing by 2.3 per cent over the same period.

In month-on-month terms inflation was 0.5 per cent in May from 0.3 per cent a month earlier, the Kenya National Bureau of Statistics said in a statement.

The office said the food and non-alcoholic beverages index was up 6.3 per cent compared with May 2024, while the transport index rose 2.3 per cent over the same period.

Kenya’s inflation remains well within the central bank’s 2.5 per cent to 7.5 per cent target range.

The central bank is due to announce its next lending rate decision on June 10.

In April the bank cut its policy interest rate for the fifth meeting in a row to 10.0 per cent, a surprise move aimed at further stimulating private sector lending.

Despite the fluctuations, Kenya’s inflation remains comfortably within the parameters set by the central bank, indicating a stable economic environment.

The data provides a key indicator of the country’s economic health, with inflation reflecting the rate at which the general level of prices for goods and services is rising.

• A Tell Media / Reuters report