Kenya: High Transport and Labour Costs Keep Food Prices Unstable - CBK

17 October 2025

Nairobi — Transport and labour expenses remain the main drivers of food price volatility in Kenya despite improved harvests and stable weather conditions, a new Central Bank of Kenya (CBK) agriculture sector survey shows.

According to the survey, 95 percent of respondents cited transport costs, while 83 percent pointed to long distances to markets as key factors influencing retail food prices in September 2025.

"Transport costs and distance to the market were the most highly cited factors that influenced retail prices of food commodities," the report noted.

Labour costs were also highlighted by 79 percent of respondents as a significant contributor to food price fluctuations.

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The findings come as prices of essential commodities such as maize flour, milk, and cooking oil remained largely unchanged between August and September -- a stability attributed to favourable pasture conditions and moderate inflation.

However, traders expect prices of tomatoes and green maize to rise in October due to seasonal demand.

CBK warned that without stronger rural infrastructure and cold-chain systems, farmers will continue facing high logistical costs that reduce earnings and sustain inflationary pressure.

The Bank has urged increased investment in rural roads and storage facilities to cushion producers and stabilize consumer prices -- a move it says is critical to achieving Kenya's food security and monetary stability goals.

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