Kenya's inflation rose sharply for the second month running in May, hitting its highest in more than two years largely due to fuel price hikes linked to the Iran war.

Inflation accelerated to 6.7% year-on-year from 5.6% in April, the Kenya National Bureau of Statistics said in a report.

May's rate is the highest since January 2024.

The statistics office said the rise in inflation was driven by a rise in prices of transport (16.5%), food and non-alcoholic beverages (9.4%) and housing, water, electricity, gas and other fuels (3.4%). Those three categories make up 57% of the weight of the inflation basket.

Kenya hiked its fuel prices in April and May in response to the surge in global energy prices triggered by the US-Israeli war against Iran.

Transport operators have gone on strike over the hikes.

Inflation is now near the top of the government's preferred 2.5% and 7.5% range.

The central bank is due to announce its next interest rate decision on June 9, after leaving its key rate unchanged at its last meeting in April.