The inflation rate in Kenya has continued to decline from its peak of 9.6% in October 2022 to a two-year low of 3.8% in May 2025. On Thursday, Kenyan Finance Minister John Badi attributed this positive change to a series of precise policy interventions implemented by the government during the release of the 2025-2026 national budget at the Nairobi Parliament House. He pointed out that the significant improvement in economic indicators stems from prudent fiscal and monetary management measures, which effectively strengthen Kenya's macroeconomic fundamentals. The Finance Minister emphasized that the slowing inflation has driven down the prices of corn flour, sugar, milk, bread, wheat flour, rice and other basic foods. The report also shows that energy and electricity costs have decreased synchronously during the same period, providing dual support for stable living costs. Overall, the low inflation environment combined with loose monetary policy has comprehensively lowered market interest rates.
